A family from Sambhal district in Uttar Pradesh has secured justice after months of struggle when the Permanent Lok Adalat directed Max Life Insurance to pay an insurance claim that was earlier denied. Devendra Kumar, the petitioner, stated that his father, Udayveer Singh, had taken out a ₹6 lakh life insurance policy in 2018. Just 17 days after the policy was issued, Udayveer passed away.
Despite being the nominee, Devendra’s request for the claim was denied by the company, which cited internal rules and the short duration between policy initiation and death. The insurance provider claimed the case did not meet the conditions required for a valid payout.
Legal Action Taken After Denial by Company
Frustrated by the denial, Devendra filed a case against the officials of Max Life Insurance at both their Aligarh and Gurugram offices. The matter was brought before the Permanent Lok Adalat, a forum designed to resolve disputes related to public utility services without prolonged litigation.
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The case was heard by a joint bench consisting of Chairman Shankar Lal, and members Satyadev and Aarti. After evaluating the documentation and circumstances surrounding the case, the bench determined that the insurance company’s refusal was unjustified and ordered it to release the full insurance amount.
A Win for the Common Man and Policyholder Rights
This verdict sets a significant precedent in holding insurance companies accountable when valid claims are denied. Legal experts noted that policyholders often remain unaware of their rights, and such rulings empower citizens to stand up against unfair practices.
The case also highlights the importance of Permanent Lok Adalats in offering swift and accessible justice, especially in financial disputes involving vulnerable or bereaved families. With this ruling, Max Life Insurance is now legally obligated to pay ₹6 lakh to the petitioner, ensuring some relief to the grieving family.