Delhi Consumer Commission Orders Tata AIA to Pay ₹9.24 Lakh Death Claim, Calls Policy Cancellation “Unfair Trade Practice”

April 8, 2026 : The District Consumer Disputes Redressal Commission, South Delhi, has directed Tata AIA Life Insurance Company Limited to pay over ₹9.24 lakh in death benefits to the nominee of a deceased policyholder after holding that the insurer arbitrarily cancelled two life insurance policies after the insured’s death.

The complaint was filed by Jalaluddin, nominee and son of the deceased policyholder Anil Kumar alias Abdul Jabbar, against Tata AIA Life Insurance Co. Ltd. before the Delhi Consumer Commission.

According to the complaint, the deceased had purchased multiple life insurance policies in 2021. After his death due to COVID-19 on December 14, 2021, the complainant sought settlement of the insurance claims. However, Tata AIA repudiated the claims citing “mismatch of photo” and alleged discrepancies in contact details and KYC documents.

The insurer contended that an internal investigation revealed disparities in the insured’s contact details and claimed the policies were cancelled on December 15, 2022, with premium amounts refunded. Tata AIA further alleged that the complainant attempted to change the payment mode even after the death of the insured, suggesting fraudulent conduct.

Rejecting the insurer’s defence, the Consumer Commission observed that the policies were cancelled more than one year after their commencement and notably after the death of the insured. The Commission found no evidence proving that the cancellation letters were ever served upon the insured or that the alleged refund was properly established.

The Bench comprising President Monika A. Srivastava and Member Kiran Kaushal held that the insurer acted arbitrarily and indulged in unfair trade practice by denying the rightful insurance claim on “frivolous grounds”.

The Commission further remarked that documentary evidence contradicted the insurer’s allegations and observed that “Men may lie but documents don’t.”

Allowing the complaint, the Commission directed Tata AIA to pay death benefits of ₹5,77,575 and ₹3,46,545 under the two policies after deducting the refunded premium amount of ₹20,900. The amount is to be paid within three months, failing which interest at 5% per annum will apply till realization.