Allahabad HC Orders Insurance Firm to Pay Rs 5 Lakh

The Allahabad High Court has ordered Oriental Insurance Company to pay Rs 5 lakh to an unmarried sister after her brother's death. The insurance firm had initially denied the claim, stating that she was not a designated family member. However, the court ruled that beneficiaries with proper documentation are entitled to benefits, regardless of familial definitions.

The court's decision was made in a case where a brother died in a road accident in 2019, leaving his unmarried sister dependent on him. The insurer had refused to pay the Rs 5 lakh death benefit, citing that sisters are not listed as beneficiaries. But the court recognized the sister as the legal heir and ordered the payment to be made to her.

The decision sets a significant precedent in insurance claim cases, emphasizing the importance of documentation and legal heirship in determining beneficiaries.