Tata AIG denied ₹30 lakh death claim over alcohol consumption by insured; why the pensioner’s family won the case

Tata AIG General Insurance rejected a ₹30 lakh accidental death insurance claim after alleging that the deceased policyholder was under the influence of alcohol when he met with a road accident. However, the insurer's decision failed to withstand scrutiny before the consumer commission, which found gaps in the medical evidence and dismissed its appeal, The Economic Times reported.

The Tamil Nadu State Consumer Disputes Redressal Commission, in its September 29, 2026 order, upheld the direction to Tata AIG to pay the ₹30 lakh claim, along with interest and compensation to the deceased pensioner's family, the news outlet stated.

The case involved Govindasamy, whose wife and two daughters approached the insurer for the accidental death benefit linked to his State Bank of India (SBI) pension account. The dispute centred on whether Tata AIG had sufficient evidence to invoke the policy's alcohol-related exclusion and deny the claim.

Why did Tata AIG reject the ₹30 lakh insurance claim?

Govindasamy was reportedly covered under a group personal accident/salary package/pension account policy issued by Tata AIG through his SBI account. The policy was valid from January 4, 2022, to January 3, 2023.

On April 9, 2022, he met with a motor accident and suffered serious head injuries. He was taken to Christian Medical College (CMC), Vellore, where he died on April 18, 2022.

His wife and two daughters filed a claim for the assured amount of ₹30 lakh on December 5, 2022.

However, Tata AIG rejected the claim on January 9, 2023, citing a policy exclusion relating to injuries sustained while under the influence of intoxicating liquor.

The family challenged the insurer's decision before the District Consumer Commission in Vellore, arguing that Tata AIG had failed to produce reliable medical or scientific evidence to establish that Govindasamy was intoxicated at the time of the accident.

The District Commission ruled in favour of the family and directed the insurer to pay the claim, along with interest and compensation for deficiency in service and mental agony.