If you are not honest while taking insurance, you may face serious problems later. There have been many cases where insurance companies did not approve claims on time, forcing people to go to court but still leaving them disappointed. One such case is of Mahipal Singh from Haryana.
What Happened in the Case of Mahipal Singh?
On March 28, 2013, Mahipal Singh purchased an insurance cover from Life Insurance Corporation (LIC). He died on June 1, 2014. After his death, his wife Sunita Singh filed an insurance claim, but LIC rejected it. This case came to light through a detailed post on the r/personalfinanceindia group on Reddit.
Mahipal Singh had bought LIC’s Jeevan Arogya Health Plan in 2013. At the time of buying the policy, he declared that he did not drink alcohol, smoke, or use tobacco. However, within a year, he was admitted to a hospital in Jhajjar, Haryana, due to stomach pain and vomiting. He was treated for about a month and then died of cardiac arrest.
After his death, Sunita Singh filed a claim with LIC, but the company rejected it, saying his health problem was due to alcohol consumption, which is not covered by the policy. Medical records revealed that Mahipal Singh used to consume large amounts of alcohol and had developed serious kidney disease because of it.
Legal Battle Up to the Supreme Court
Sunita then approached the District Consumer Court. The court ordered LIC to pay ₹5,21,650 with interest and compensation. Later, the State Consumer Commission and National Consumer Commission also upheld this order, stating that Jeevan Arogya is a reimbursement plan and not a fixed cash policy.
LIC, however, did not accept this decision and appealed to the Supreme Court. On March 3, 2025, the Supreme Court ruled in favor of LIC. The court said that alcohol addiction cannot be hidden from the insurance company, as it affects the insurance risk. The judges stated that Mahipal Singh’s drinking habits had caused liver damage, which led to his hospitalisation and death. The court also clarified that Jeevan Arogya is a cash benefit policy, not a reimbursement plan, so LIC’s claim rejection was correct.
My name is Bhupendra Singh Chundawat. I am an experienced content writer with several years of expertise in the field. Currently, I contribute to Daily Kiran, creating engaging and informative content across a variety of categories including technology, health, travel, education, and automobiles. My goal is to deliver accurate, insightful, and captivating information through my words to help readers stay informed and empowered.
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