President Alvi overrules State Life Insurance Corporation, directs payment of claims

President Alvi overrules State Life Insurance Corporation, directs payment of claims


Insurance claims worth Rs3.2 million awarded by President Dr Arif Alvi

ISLAMABAD (Dunya News) – President Dr Arif Alvi on Wednesday rejected the appeals of the State Life Insurance Corporation and ordered it to pay insurance claims worth 3.2 million rupees to three citizens.

The complainants, namely the family members of Samina Shahzadi, Mohammad Mahfooz, and Sita, had obtained insurance policies worth Rs2.9 million, Rs198, 290, and Rs192,000, respectively, after the death of the policyholders.

However, the State Life Insurance Corporation had accused the complainants of deliberately concealing illnesses from the heirs and had refused to pay the amount. The complainants then approached the Federal Ombudsman, who issued orders in their favor.

State Life Insurance Corporation filed petitions against the decisions of the Ombudsman, which were later rejected by the President. He stated that the husband of Samina Shehzadi died due to COVID-19 instead of a brain tumor, the death of the sister of Muhammad Mahfooz occurred after three years and seven months after getting the policy, and Sita's husband died two years and two months after getting the policy.

The president further added that according to the Insurance Ordinance, no life insurance policy could be questioned after the expiry of two years. In cases where State Life's misconduct was proven, State Life should pay the death insurance premiums to the three complainants.

This decision by the president has come as a relief to the three complainants who had been fighting for their insurance claims for a long time.

It is also a reminder to insurance companies that they cannot deny claims to their policyholders without proper investigation and evidence.