Tue Sep 02 19:45:46 UTC 2025: **Summary:**

The Telangana State Consumer Disputes Redressal Commission has upheld a District Consumer Commission order, compelling the Life Insurance Corporation of India (LIC) to pay ₹2 lakh to the family of a deceased policyholder. LIC had attempted to deny the claim, alleging the policyholder concealed a pre-existing cervical cancer diagnosis. The Commission strongly criticized LIC’s practices, stating the insurer was aware of the medical condition when issuing and reviving the policy. It condemned the attempted repudiation of the claim as bad faith and dismissed LIC’s appeal.

**News Article:**

**Insurance Giant Slammed for “Subterfuge” in Telangana Claim Denial**

**Hyderabad, September 3, 2025** – The Life Insurance Corporation of India (LIC) has been sharply criticized by the Telangana State Consumer Disputes Redressal Commission for attempting to deny a claim based on alleged concealment of pre-existing medical conditions. The Commission upheld a lower court’s ruling, ordering LIC to pay ₹2 lakh to the family of Jillapali Satyavathi, an agricultural laborer who passed away in 2019.

LIC had argued that Ms. Satyavathi withheld information about cervical cancer tests and treatment prior to taking out the policy. However, the Commission found that LIC was aware of her medical condition when the policy was issued and subsequently revived after a lapse.

“We are unable to digest the manner in which the opposite party treats their clients and the deceptions they are willing to carry through,” stated the Commission in its order, branding LIC’s actions as “subterfuge” and a violation of good faith principles governing insurance contracts.

The Commission’s strong words highlight growing concerns over claim repudiations by insurance companies, particularly impacting vulnerable populations. The bench pointed out the hypocrisy of readily issuing and reviving policies while later denying claims based on information already available to the insurer.

The Commission dismissed LIC’s appeal, allowing the complainant, Mr. Jillapali Durgaiah, to withdraw the deposited amount along with accrued interest. This ruling sends a clear message that insurance companies cannot exploit vulnerable clients and must uphold the integrity of their contractual obligations.

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