Life insurance can’t be terminated after two years: SC

ISLAMABAD - The Supreme Court of Pakistan on Saturday issued an important decision regarding life insurance stating that the policy could not be terminated after two years of insurance due to any kind of documentation or misrepresentation. A three-member SC bench comprising Justice Umar Ata Bandial, Justice Munib Akhtar and Justice Sajjad Ali Shah announced the decision on an appeal filed against Peshawar High Court order judgment.  According to the case details, Abdul Rehman took out a life insurance policy with the appellant insurance company on or about 01.08.2002. The person passed away on 07.02.2010 and the respondent, his legal heir, lodged a claim under the policy. That claim was rejected vide letter dated 15.04.2011. No specific reason, as such, was given as to why the claim was not accepted. The respondent commenced proceedings, on or about 25.11.2011, before the Insurance Tribunal. By judgment dated 07.06.2014, the Tribunal decreed the claim in the sum of Rs. 400,000/-, which was the insured amount. 


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