If a gangster or mafia kills a person in a premeditated manner, can his family get extra money from the insurance company in case of accidental death? Murder is generally considered an intentional crime, but does this mean that the family will not receive accidental death benefits? Punjab State Consumer Dispute Redressal Commission has taken an important decision in this matter. The bench said that if a person is killed in a premeditated manner, he cannot be excluded from accidental death coverage under the insurance policy on that ground alone. The Commission has directed the Life Insurance Corporation of India to provide additional accident benefits under four insurance policies.

In this decision, the Commission clarified that the intention of the killer and accidental death under the insurance policy are two different things. If the insurance company is unable to prove that the family of the deceased is not entitled to additional benefits as per the terms of the policy, the claim cannot be rejected merely on the ground that the killing was a premeditated crime.

5 big things about the Commission’s decision

1. You can also get insurance in case of murder: Even if the killing of a person is planned, his family can get accidental death benefit.
2. Intent to kill and insurance coverage are different: The fact that the assailant killed intentionally does not mean that the death cannot be considered an accident from an insurance point of view.
3. LIC has to pay additional money: The Commission directed to provide double accident benefit under four insurance policies.
4. Proof of guilt of the deceased is required: The insurance company could not prove that the deceased was involved in any such activity which led to his death.
5. 6 percent interest also has to be paid: The commission ordered additional insurance benefits with 6 percent annual interest from April 30, 2021.

A man sitting at a shop was killed by a goon.

This case is connected with the murder of Tajinder Singh. On July 14, 2020, he was killed by some unidentified assailants sitting at his shop in Moga, Punjab. Tajinder Singh had taken four life insurance policies from LIC. In all these policies, there was a provision of double accident benefit i.e. additional sum assured in case of accidental death.

The total basic sum assured of all four policies was Rs 26.6 lakh. After Tajinder Singh’s death, LIC paid normal death benefit to his family, but refused to grant accidental death benefit. Under this additional benefit, the family can get more money than the normal sum assured.

The LIC said that an investigation conducted on the basis of material available on social media and a police closure report revealed that the murder was committed by gangster Sukhpreet Singh alias Sukha Gill Lamme. According to the company, the killing was premeditated to spread terror in the area. Therefore, additional sum assured cannot be given by treating it as accidental death. The Moga District Consumer Commission accepted this contention of LIC in November 2022 and dismissed the family’s complaint. The family then approached the state consumer commission.

Why was LIC’s argument not accepted?

A bench of judicial member HPS Mahal and member Kiran Sibal heard the case again in the Punjab State Consumer Disputes Redressal Commission. The panel found that LIC had failed to prove that Tajinder Singh himself was involved in any activity leading to his murder.

The LIC also mentioned the alleged social media posts of the gangster. The post claimed that there was a dispute with Tajinder Singh. However, the Commission noted that this claim was neither corroborated by the FIR nor by the police investigation report.

The Commission also referred to the LIC circular of the year 2007. According to this circular, there is no need to withhold accidental death benefit in cases of murder, if there is no indication in the police records that the murder was committed by the deceased or that there was complicity of the family in making the insurance claim.

The Commission accepted that LIC had taken an overly technical approach in the matter. The company also could not produce any policy exclusion clause on the basis of which it could be proved that the death of Tajinder Singh was not covered by the additional insurance coverage.

The family will also get additional insurance benefits and 6 percent interest.

The State Consumer Commission revoked the old order of the District Commission. Also directed LIC to pay accidental death benefit under all four insurance policies of Tajinder Singh. Along with this, 6 percent annual interest will also have to be paid from 30 April 2021.

The main premise of this decision is that premeditated murder is not a sufficient reason to deny additional insurance benefit. The insurance company will have to take its decision based on the terms of the policy and the evidence regarding the case.

However, it does not mean that the family will automatically get accidental death benefit in every case of murder. For this, the terms and conditions of the relevant insurance policy, police record and facts of the case will be important. This decision of the Punjab State Consumer Commission shows that an insurance company cannot reject a claim merely by calling the killing a deliberate offence. It also has to specify on the basis of which policy conditions the additional insurance benefit is being denied.