Islamabad, 06 September 2022: While rejecting four separate representations of the State Life Insurance Corporation of Pakistan (SLICP) against the decisions of the Wafaqi Mohtasib, President Dr Arif Alvi has directed it to pay the sum assured of Rs 1.78 million to the family members of the policyholders as it had committed maladministration by denying the said amount to the claimants without any evidence of pre-insurance ailments in the deceased policyholders.

He held that maladministration on the part of SLICP stood established as it had failed to prove the existence of alleged pre-insurance ailments with unimpeachable evidence at the time of obtaining the policy and had not taken the necessary care of undertaking medical tests/examinations before the issuance of life insurance policies to deceased policyholders.

The President in his decisions pointed out that the Field Officers of the Agency had annexed Confidential Reports declaring the insured persons as completely healthy. He further observed that the repudiation of the life insurance claims required unimpeachable evidence regarding the existence of the alleged pre-insurance ailments and its knowledge on the part of the policyholders.

The President held that in all four cases, no clinical investigation or diagnostic assessment had been produced by SLICP to corroborate that the deceased policyholders were in fact patients of different diseases. He rejected all four representations and directed SLICP to report compliance to the Mohtasib within 30 days.

As per details, the complainants (Mst Irshad Bibi, Mst Samreen Aasima, Mr Muahammad Awais and Mr Muhammad Ismail) had approached SLICP for the payment of the sum assured as per the insurance policies. SLICP refused to pay the claims by alleging that the deceased policyholders had pre-insurance ailments, such as TB, Cystic Bronchiectasis, kidney disease or lung disease, which they wilfully kept secret at the time of obtaining the policies. Feeling aggrieved, the complainants separately approached the Wafaqi Mohtasib to seek compensation, which passed the orders in their favour. Later, SLICP filed representations against the decisions of the Mohtasib with the President, which were also rejected.

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