President orders SLIC to pay policy amount to claimants.

ISLAMABAD -- President Dr Arif Alvi on Thursday directed State Life Insurance Corporation of Pakistan (SLICP) to pay due policy amount of Rs1.95 million to claimants besides strengthening pre-policy verification process to facilitate clients, upholding the orders of the Wafaqi Mohtasib (WM) in four similar representations filed by the SLICP.

According to the Presidency, he directed the SLICP to improve and strengthen its business procedures and processes before and after the award of policies to eliminate the possibilities of future litigations.

In his decision, the president observed that maladministration on part of SLICP was established and ordered the corporation to not only settle the claims worth Rs1.95 million with four claimants but also pay them the profit accumulated during the entire period when the payment was withheld.

He observed that the point of view of SLICP was not tenable as the policyholders were declared medically fit in the medical examination by the authorised medical officer of SLICP prior to the issuance of the policy as well as by the field officers who had declared the deceased policyholders healthy at the time of the issuance of the policies, therefore, the pleas of the pre-insurance ailments were hit by the principle of estoppels.

President Alvi also made reference to the Contract Act 1872 and said that where the consent was caused by...

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