Can Insurer Use Exclusion Clause To Scrap Claim? Supreme Court To Examine

Insurance firm has said that as per exclusion clause, suicide by an insured within 12 months from policy reinstatement date has no amount as payable

The Supreme Court has agreed to examine an appeal filed by an insurance firm challenging an order of the National Consumer Disputes Redressal Commission (NCDRC) that directed it to pay Rs 13.48 lakh to a woman whose husband died by suicide.

Reliance Life Insurance Company Limited had refused the claim, relying on the exclusion clause of the policy.

Staying the NCDRC order, a bench of Justices D Y Chandrachud and B V Nagarathna issued a notice to the woman on the appeal filed by a branch manager of the insurance firm.

"Issue notice, returnable in eight weeks. Pending further orders, there shall be a stay of the operation of the impugned judgment and order of the National Consumer Disputes Redressal Commission," the bench said in its October 20 order.