Changes in policy terms must be conveyed

Mustafa Pithawala had taken a home loan of ₹20,11,101 from Tata Capital Housing Finance on October 19, 2015. To secure its repayment, he was covered under ICICI Lombard Group Secure Mind Policy, valid from October 23, 2015, to October 22, 2020. This policy also covered personal accident and major medical illnesses and procedures such as coronary artery bypass graft surgery (CABG).

- JEHANGIR B GAI

During the tenure of the loan and the policy, a representative of Cholamandalam Investment and Finance Company approached Pithawala with an offer to transfer his existing loan for a higher amount of ₹1,02,10,000 and repayment coverage under an identical policy from HDFC Life Group Credit Protect Plus Insurance Plan, with the only difference being that the sum insured would be the enhanced loan amount of ₹1,02,10,000 and the tenure would be seven years.

Relying on the representation, Pithawala executed the necessary documents and paid a premium of ₹2,08,458. Subsequently, the switch took place on February 8, 2018. Pithawala repeatedly requested a copy of the policy, but it was not issued.

Later, Pithawala developed a heart problem for which he incurred ₹2,65,816 for a CABG surgery in December 2018. He lodged a claim, which was rejected as the new HDFC policy was limited only to death benefits and did not cover critical illnesses.