My father passed away naturally. We had a life insurance policy with accidental coverage. We claimed only for the natural death benefit, but the insurance company mistakenly approved the accidental coverage. Now they are asking us to pay back the accidental claim amount. Is there a legal obligation for us to repay, considering it was an honest mistake?

Apni Law
Apni Law
Law Forum › Category: Insurance › My father passed away naturally. We had a life insurance policy with accidental coverage. We claimed only for the natural death benefit, but the insurance company mistakenly approved the accidental coverage. Now they are asking us to pay back the accidental claim amount. Is there a legal obligation for us to repay, considering it was an honest mistake?
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Apni Law Staff asked 7 months ago

My father passed away naturally. We had a life insurance policy with accidental coverage. We claimed only for the natural death benefit, but the insurance company mistakenly approved the accidental coverage. Now they are asking us to pay back the accidental claim amount. Is there a legal obligation for us to repay, considering it was an honest mistake?

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Best Answer

Apni Law Staff answered 7 months ago

Under Indian law, you are legally obligated to repay the excess amount received due to the insurance company’s mistake, even if it was unintentional. The principle of unjust enrichment applies here, where you received a benefit you were not entitled to. You are legally bound to rectify the mistake and return the excess funds.

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