President Alvi Directs State Life Insurance Corporation to Pay Claims On May 3, 2023, President Dr. Arif Alvi ordered the State Life Insurance Corporation to pay insurance claims worth 3.2 million rupees to three citizens. The corporation had rejected the claims of Samina Shahzadi’s family members, Mohammad Mahfooz, and Sita, who had obtained insurance policies worth Rs2.9 million, Rs198,290, and Rs192,000, respectively, after the death of the policyholders. The corporation had accused the complainants of concealing illnesses from the heirs, but the Federal Ombudsman had issued orders in favor of the complainants. The corporation had filed petitions against the decisions of the Ombudsman, which were later rejected by the President.
According to the President, the husband of Samina Shahzadi died due to COVID-19, not a brain tumor as alleged by the corporation. The sister of Muhammad Mahfooz passed away three years and seven months after getting the policy, and Sita’s husband died two years and two months after getting the policy. The President also noted that no life insurance policy could be questioned after the expiry of two years under the Insurance Ordinance. He added that in cases where the corporation’s misconduct was proven, it should pay the death insurance premiums to the three complainants.
This decision by the President has brought relief to the three complainants who had been fighting for their insurance claims for a long time. It also serves as a reminder to insurance companies that they cannot deny claims to their policyholders without proper investigation and evidence. It is essential for insurance companies to thoroughly investigate claims and provide proper evidence before denying them.
The State Life Insurance Corporation is a government-owned insurance company that provides a range of insurance products to its clients. It is one of the oldest insurance companies in Pakistan and has been providing services for over 80 years. The corporation has a large number of policyholders and is responsible for paying out millions of rupees in claims each year.
The President’s decision to direct the State Life Insurance Corporation to pay the claims of the three complainants highlights the importance of fair and just dealings by insurance companies. This decision has brought hope to policyholders who have been denied their rightful claims and serves as a reminder to insurance companies that they cannot act arbitrarily in denying claims to their clients.