The National Consumer Disputes Redressal Commission (NCDRC) on July 21 directed Life Insurance Corporation of India (LIC) to pay over Rs 60 lakh in claim amount and compensation to a policyholder's family for deficiency in service and unreasonable delay in claim settlement.
The Commission found that LIC had delayed the claim settlement for more than 18 months without valid justification, causing mental agony and financial hardship to the nominee family. The order includes the policy sum assured of Rs 30 lakh with accrued bonuses, plus compensation of Rs 10 lakh for mental harassment and litigation costs.
The NCDRC observed that insurance companies cannot use prolonged investigations as a tool to delay genuine claims. Timely claim settlement is a fundamental obligation of insurers, and delays beyond a reasonable period constitute deficiency in service under the Consumer Protection Act.
Source: Economic Times (July 21, 2026)