ISLAMABAD: President Dr. Arif Alvi has issued a decisive directive to the State Life Insurance Corporation of Pakistan (SLICP) to promptly pay a long-pending death insurance claim amounting to Rs 300,000, along with accrued profits, to the family members of the deceased policyholder.
This claim had been pending for nearly three years and was subject to dispute. In addition to resolving this claim, President Alvi has also tasked State Life with the creation of a panel of medical experts to establish a policy for pre-insurance tests for prospective policyholders.
The President’s directive comes after the rejection of a representation filed by SLICP against an order from the Wafaqi Mohtasib, an ombudsman authority. The complainant, Saad Taheer, had asserted that his father had purchased a life insurance policy in 2013 with a sum assured of Rs 300,000 and an annual premium of Rs 18,406. Unfortunately, his father passed away in 2020, and when Saad filed the death insurance claim, SLICP refused to honor it. The refusal was based on the claim that the deceased had concealed a pre-insurance ailment, hepatitis-C. Dissatisfied with this outcome, Saad approached the Wafaqi Mohtasib, who recommended that SLICP reassess the matter and provide appropriate relief to the beneficiaries of the deceased policyholder. In response to the Mohtasib’s order, SLICP filed a representation with the President, contesting the decision.
President Alvi conducted a hearing to adjudicate the matter, and after carefully reviewing the arguments presented by both sides, he made his decision. He pointed out that the deceased had obtained the policy in 2013, while SLICP had submitted copies of medical reports from the year 2015. All of these medical reports pertained to the post-insurance period and were, therefore, deemed irrelevant for the claim dispute. Moreover, the Confidential Report of the Field Officer of SLICP had stated that the insured was in good health at the time of policy issuance and had known the insured for the past two years.
The President also cited Section 80 of the Insurance Ordinance 2000, which stipulates that no life insurance policy, after the elapse of two years from its initiation date, can be contested by the insurer on the grounds of false or inaccurate statements in the proposal or any medical officer’s report.
As a result, President Alvi rejected SLICP’s representation and directed the corporation to disburse the insurance claim, including the accumulated profit, within 30 days to the beneficiaries. Additionally, he called upon State Life to establish a panel of medical experts who would advise on the formulation of a policy regarding pre-insurance medical tests. This panel would assess prevalent and common diseases in Pakistan and recommend appropriate tests before policy issuance. The President suggested that SLICP consider devising a risk assessment for various diseases, potentially leading to modified premiums for individuals with mild and widespread conditions such as diabetes, hypertension, and hepatitis.
This directive underscores the commitment to fairness and transparency in the insurance sector while ensuring that policyholders and their beneficiaries receive the rightful benefits.
