Kathmandu. An insured who had taken a life insurance policy at Himalayan Life Insurance (HLIC) has been facing problems for his family members as he renewed his insurance policy only after it was confirmed that he was suffering from cancer.
Byas Prasad, who had taken life insurance on October 15, 2020 at Himalayan Life, died on January 3, 2022. His wife Sharada Devi Kurmin had filed an application for the insurance on July 19, 2080 but did not receive a single penny as the claim. The insured had a 20-year life insurance cover of Rs 300,000.
The insured was supposed to pay the second installment of the premium on October 15, 2021. He couldn’t pay. After about 10 months, on May 17, 2022, he renewed the insurance policy by paying the installment of the insurance with compensation, interest. According to Himalayan Life, when the insurance policy was revived, he had declared that he did not have any disease in the declaration form.
While studying the death claim documents, the Histopathology Report issued by the National Medical College confirmed that the insured had cancer on April 25, 2021, i.e. 37 days before the revival of the policy. Himalayan Life had rejected the claim arguing that he had revived the policy against the principle of mutual mistrust by making a false declaration in the revival form even after the disease was confirmed.
The report of histopathology issued by the Judicial Committee of the NRA has mentioned that cancer has been confirmed in the report issued by the National Medical College, Birgunj. Memorial Cancer Hospital, Bharatpur, dated April 19, 2012, 2012 was found to have mentioned cancer in a letter related to Jojas, therefore, the claim was dismissed with the conclusion that the insured was a cancer patient even before the revival of the insurance and the principle of good faith was violated.
The judgment of the Authority reads, “The insured’s contention that the act of the insured who has revived the insurance without declaring the disease is against the principle of good faith of the insurance and therefore the liability is not to be incurred.”
Nepal Insurance Authority (NEA) has published this information in the full text of the judgment of Complaint No. 263 of 2080/04/05 filed against Himalayan Life in Judgment Collection No. 9 of July 2081.
