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Recently, the Kerala High Court set aside the Life Insurance Corporation of India’s (LIC) decision to repudiate medical insurance. The high court held that repudiation of medical claims by insurers cannot be sustained when based on unrelated pre-existing conditions or when raised beyond the statutory bar under Section 45 of the Insurance Act, 1938. The Kerala HC bench of Justice P.M. Manoj, delivered the judgment in two connected writ petitions, and quashed LIC’s orders that had restricted and later rejected claims for the hospitalisation and treatment of the petitioner’s wife under LIC’s Health Plus Plan (Table 901). The state’s top court also directed LIC to honour the claims without further delay, stressing that arbitrary repudiations defeat the very object of insurance. The high court also expressed its concern at a public sector body like LIC often repudiating medical claims on trivial and technical grounds. It added that the object of life insurance is to secure unforeseen incidents and it gets defeated when claims are rejected for unsubstantial reasons. Kerala High Court Upholds Conviction and Life Sentence of Man Who Attacked Wife, His 4 Children With Acid; Directs State To Pay INR 3 Lakh Each to the Victims. Kerala High Court Directs LIC To Honour the Claims Without Further Delay ‘Defeats Purpose Of Life Insurance’: Kerala High Court Expresses Concern Over LIC’s Denial Of Medical Claims On Trivial Groundshttps://t.co/niKK49bzg6 — Live Law (@LiveLawIndia) October 5, 2025