Wife Dies Heart Attack 5 Days Insurance Cover Husband Rs 50 Lakh
Indian Express
A consumer commission in Visakhapatnam has directed HDFC Life Insurance to pay Rs 50.30 lakh to the husband of a woman who died of a heart attack just five days after the commencement of her policy.
A bench of president Dr Gudla Tanuja and member Varri Krishna Murthy were hearing the complaint filed by 53-year-old Savara Bhaskar, who sought directions to the insurance company to pay the sum assured of Rs 50 lakh and Rs 1 lakh as compensation for mental agony.
“The opposite parties (HDFC Insurance), having issued a policy based on the proposal receiving the premium amount, cannot disown their liability after the risk invoking the exclusionary clauses. Hence, the Commission is constrained to hold that the opposite parties miserably failed in discharging the burden in proving the defence and the acts of the opposite parties in cancelling the policy after risk without any justifiable ground tantamount to deficiency in service,” the May 30 order read.
The complainant was the husband and nominee of the late Savara Radha, who died on March 15, 2025, due to a heart attack. During her lifetime, she had obtained an HDFC Life Smart Protect Plan policy on March 10, 2025, paying an annual premium of Rs 50,000.
It was added that the sum assured under the policy was Rs 50 lakh. The risk commenced on March 10, 2025, as per the policy. While so, after the death of the wife on March 15, 2025, HDFC Life Insurance sent a letter called “Confirmation of policy discontinuance” stating that, on investigation, it was established that the policy is cancelled due to misstatement and misrepresentation of material facts in the proposal form.
The husband claimed that as his wife died during the continuance of the policy, HDFC Life Smart Protect Plan is bound to pay the assured sum but issued a letter cancelling the policy without any valid and justifiable reason. Aggrieved by the same, the husband moved the consumer commission alleging deficiency in service on the part of HDFC Life Insurance. ‘
The husband was represented by advocate D Subrahmanyam in the matter.
The counsel appearing for HDFC Life Smart Protect Plan, advocate K Rama Kireeti contended that the policy in question was issued covering risk from March 10, 2025, receiving annual premium of Rs 50,000 within five days of commencement of risk.
It was contended that the policy in question was cancelled on April 10, 2025, on the ground of misrepresentation of profile, which constituted a material breach of policy conditions rendering the contract voidable at the instance of the insurer.
It was claimed that since the policy was cancelled during freelook/early period after due scrutiny of proposal particulars, no vested right accrues in favour of the woman’s husband.
HDFC Life Smart Protect Plan maintained that there is no deficiency of service on their part and prayed the commission to dismiss the complaint with exemplary costs.
This ruling highlights that insurers cannot avoid liability simply because the policyholder dies soon after taking the policy. Once a valid policy is in force, the insurer is bound to honour covered claims, and the right to receive compensation survives in favour of the legal heirs.
For consumer-related grievances, individuals may contact the consumer helpline in their respective states (Andhra Pradesh contact: 0866-2551431) or call the National Consumer Helpline at 1915 for assistance.
Richa Sahay is a Legal Correspondent for The Indian Express, where she focuses on simplifying the complexities of the Indian judicial system. A law postgraduate, she leverages her advanced legal education to bridge the gap between technical court rulings and public understanding, ensuring that readers stay informed about the rapidly evolving legal landscape. Expertise Advanced Legal Education: As a law postgraduate, Richa possesses the academic depth required to interpret intricate statutes and constitutional nuances. Her background allows her to provide more than just summaries; she offers context-driven analysis of how legal changes impact the average citizen. Specialized Beat: She operates at the intersection of law and public policy, focusing on: Judicial Updates: Providing timely reports on orders from the Supreme Court of India and various High Courts. Legal Simplification: Translating dense "legalese" into accessible, engaging narratives without sacrificing factual accuracy. Legislative Changes: Monitoring new bills, amendments, and regulatory shifts that shape Indian society. ... Read More