Insurance firm ordered to pay $13,000 to diabetic policyholder after denied claim

TDT | Manama

Email: mail@newsofbahrain.com

An insurance company must pay a Bahraini man $13,000 after courts ruled that he had informed its agent of his diabetes when he signed a $360,000 life insurance policy, despite the firm later claiming otherwise.

The policyholder, who later developed health problems that left him unable to work or move, sought a payout under the terms of his cover.

The insurer refused, arguing that he had not disclosed his condition.

The dispute went through multiple court hearings, with each ruling against the company.

Judges found that the insurer’s representative had been told of the illness at the time of signing, making it a formal disclosure.

Since the agent had been authorised to act on behalf of the company, his knowledge was considered the company’s own.

The court ordered an initial payout of $13,000, while a separate claim was lodged to recover the remainder.

Lawyer Jalal Rabi’a, representing the policyholder, said the dispute dated back to 2013 when his client took out the insurance.

The agreement covered a total of $360,000, payable at a rate of $1,500 a month over 20 years.

The man paid a quarterly premium of $609, which included $476 for the cover itself and a $161 fee.

A separate clause covered permanent disability, set out in the third section of the agreement.

The contract was arranged through one of the insurer’s sales agents.

According to the lawyer, the agent had the man sign blank disclosure forms, later filling them in himself.

Only after this did the company instruct the policyholder to undergo a medical examination at one of its approved centres, at its own expense, to assess his health and check for any longterm conditions.

Years later, his condition worsened.

No longer able to work or move freely, he contacted the company to claim against his policy.

He provided medical reports detailing his state, showing that the insured risk had materialised.

The insurer rejected the claim.