Life Insurance Claim Rejected Over Sickle Cell Disclosure: Family Gets Rs 7 Lakh Relief

A Chhattisgarh family has won a life insurance dispute after India Post declined a Rs 7 lakh claim, alleging that the young policyholder had hidden a sickle cell condition.

The complaint was filed by Vidyacharan Sahu and Shanti Bai Sahu, parents of Devesh Sahu, who died at 19. The policy was taken out in December 2023 and became effective in April the following year. It carried a sum assured of Rs 7 lakh, and Devesh’s mother was the nominee.

Devesh died on August 6, 2024. When the family lodged the claim, India Post rejected it in November 2025, saying Devesh had suffered from sickle cell disease since childhood and had wrongly declared himself healthy in the proposal form.

The family challenged the rejection before the Janjgir-Champa District Consumer Disputes Redressal Commission.

Insurer Relied On Alleged Past Illness

India Post argued that the policy had been obtained by suppressing an important medical fact. According to the insurer, an internal inquiry indicated that Devesh had been suffering from sickle cell disease for several years, according to a recent report by The Indian Express.

The parents denied that he had been diagnosed before the policy was taken. They said no earlier medical papers had been produced to show that Devesh knew of the condition when he filled the proposal form.

Records from his final hospitalisation referred to a suspected sickling crisis. The commission, however, said this did not establish that the illness had been diagnosed earlier or knowingly concealed.

No Medical Proof Of Deliberate Concealment

The commission found that the insurer had not submitted any previous test report, prescription, treatment record or diagnosis. India Post also referred to a statement allegedly made by Devesh’s father during its inquiry, but did not place that statement before the commission.

The consumer body said the burden was on the insurer to prove that a material fact had been deliberately withheld. Suspicion or an unsupported assertion was not enough to deny the claim.

It held that the repudiation amounted to deficiency in service because India Post could not establish that Devesh knew about the disease before buying the policy.

Commission Orders Payment With Compensation

In its July 2, 2026 order, the commission directed India Post to pay the nominee the full Rs 7 lakh claim within 45 days.

It also awarded Rs 30,000 for mental agony and Rs 5,000 towards litigation costs. If payment is delayed, the amount will attract interest at seven per cent a year from the date of the order until it is paid.

The case shows that policyholders must make complete and truthful disclosures. An insurer rejecting a claim for non-disclosure must, however, produce clear evidence of an earlier diagnosis and conscious suppression.

FAQs

1. Can an insurer reject a life insurance claim for non-disclosure of an illness?

Yes, but it must show that the policyholder knew about the illness and deliberately withheld the information while buying the policy.

2. Is suspicion of a pre-existing disease enough to deny a claim?

No. The insurer should support the rejection with medical records, test reports or other credible evidence of an earlier diagnosis.

3. What can a nominee do if a life insurance claim is unfairly rejected?

The nominee may challenge the decision before the insurance ombudsman or the appropriate consumer disputes redressal commission.