A woman who lost her husband during the COVID-19 pandemic has received significant relief from the Madras High Court in an insurance claim dispute. The court overturned an earlier ruling by a single judge and directed the insurance company to pay Syed Ali Fatima ₹26.87 lakh under the policy. However, the insurer has been exempted from paying interest on the amount. The case dates back to 2020, when the woman’s husband died after contracting COVID-19. Following his death, she claimed the insurance amount under the policy, but the company rejected her claim, prompting her to approach the court.

Husband Died After Contracting COVID-19
According to the case details, Syed Ali Fatima’s husband had taken out insurance coverage worth ₹26.87 lakh under a master policy. On July 3, 2020, he contracted COVID-19 and was admitted to the Jawaharlal Institute of Postgraduate Medical Education and Research (JIPMER) in Puducherry. He died during treatment on July 26, 2020. Following his death, Fatima submitted a claim to the insurance company for the full amount payable under the policy. However, the insurer refused to accept her claim. She subsequently approached the court to seek the amount she believed she was entitled to receive.

Why Did the Insurance Company Reject the Claim?
The insurance company cited information related to the policy as the reason for rejecting the claim. It argued that the deceased had not disclosed pre-existing medical conditions, including diabetes and high blood pressure, when purchasing the insurance. The company treated this as a failure to disclose important information. Insurance applicants are generally expected to provide accurate details about their health when applying for coverage. On this basis, the insurer refused to pay the claimed amount of ₹26.87 lakh. Fatima subsequently challenged the company’s decision in court.

Single Judge Had Earlier Dismissed the Petition
After the insurance company refused to provide relief, Fatima filed a petition before the Madras High Court. The single judge hearing the case held that the deceased had failed to disclose information about his medical conditions. The court considered this a violation of the duty to provide accurate information under the insurance policy and dismissed the woman’s petition. Fatima then challenged that decision by filing an appeal before a division bench comprising two judges. Following the hearing of the appeal, the woman has now received relief.

What Did the Two-Judge Bench Say?
A division bench of the Madras High Court, comprising Justice C.V. Karthikeyan and Justice R. Shaktivel, heard the matter. The bench observed that COVID-19 was an infection that could affect anyone. It also considered the circumstances prevailing at the time, when the medical community did not yet have complete knowledge of the virus’s effects and treatment. According to the bench, although diabetes and high blood pressure had not been disclosed in the insurance policy, the risk of death from COVID-19 should not be treated as excluded from insurance coverage on that basis. The court therefore overturned the single judge’s earlier decision.

₹26.87 Lakh Awarded, but No Interest Payable
The High Court directed the insurance company to pay Syed Ali Fatima ₹26.87 lakh under the insurance policy. However, the court also acknowledged that the deceased had not disclosed his existing medical conditions. For this reason, the insurer was exempted from paying interest on the amount. The ruling provides relief to the woman after a prolonged insurance dispute. The case also highlights how courts may consider the circumstances surrounding a death and the risks involved, alongside the terms of an insurance policy, when deciding disputes over insurance claims.