Federal Ombudsman has ordered an insurance company on Saturday to make over Rs 20 million payment to policy holder’s legal heirs within 30 days. Senior investigation officer, Federal Ombudsman Multan region, Dr. Zahid Malik said that complainant Mirza Azmat Baig said in his application that his brother Mirza Shafqat Baig had availed insurance policy from State Life Insurance Corporation (SLIC) in 2018 and was making payment of Rs 2.5 million per annum. He said that his brother died in 2020.
The family applied for insurance claim but the company has not yet made the payment despite passage of three years. The insurance company official informed the FO that the claim was not accepted as the policy holder had concealed information regarding his illness which was against the policy of the SLIC.
The Federal Ombudsman, however, said in his order that the company initiated the policy after medical examination of the policy holder by its own medical officer. The policy holder was declared healthy by the SLIC doctor before the policy was initiated. Moreover, according to principles of natural justice, no one can be condemned unheard. But the company deprived the policy holder of his right without affording an opportunity of hearing which tantamount to maladministration.
The Federal Ombudsman rejected the stance of the insurance company and issued orders for payment of over Rs 20 million insurance claim to legal heirs of policy holder’s within 30 days.
