'Insurance Firm Charged Hefty Premium, But Became Evasive After Cousin's Death'

Bajaj Allianz refused my cousin's insurance claim citing suicide, contrary to the Cleveland Police's investigation.

Arfath (right), who had come to the US from Hyderabad to pursue his studies at Cleveland State University, was reported missing on 7 March 2024.

(Photo: Aroop Mishra/The Quint)

Earlier this year, tragedy struck our family when my younger brother, Abdul Arfath Mohammed, went missing from Cleveland, Ohio.

Arfath, who had come to the US from Hyderabad to pursue his studies at Cleveland State University, was reported missing on 7 March 2024. As his elder cousin living in Washington, DC, I had promised my uncle, Mohammed Saleem, that I would be there to support and guide Arfath as he pursued his dreams in a foreign land.

Abdul Arfath Mohammed. 

(Photo Courtesy: Ahmed Mohammed)

Arfath was my uncle’s only son, and he had high aspirations for his future. He was someone who looked up to me, a bright young man with dreams of achieving great things.

Despite tireless efforts from our family, the Cleveland Police, and the FBI [Federal Bureau of Investigation], weeks went by without any information on his whereabouts. The devastating news came over a month later when we were informed on 9 April that Arfath’s body had been discovered in Cleveland's Lake Erie, marking a tragic end to our search.

Lake Erie, Cleveland where Arfath's body was found. 

(Photo Courtesy: Ahmed Mohammed)

After extensive paperwork and coordination with the Indian Embassy, Arfath’s remains were finally brought back to India for his last rites. I was at the center of this entire process, liaising with the authorities, the FBI, and embassy officials, who offered us all kinds of support in our grief. But for my uncle, Mohammed Saleem, the loss was beyond measure. He had lost his only son, without any clear answers as to why.

Following the burial, I continued to pursue the authorities for details on the circumstances of Arfath’s death.

After nearly two months, I received the Cleveland Coroner’s report, which confirmed the cause of death as "drowning", adding "in a manner undetermined".

Cleveland Coroner’s report indicating that Arfath died due to drowning. 

That is to say there was no further conclusion on how this tragic incident occurred – whether it was an accident, a slip, or something more sinister. The area where his body was found had no CCTV surveillance, and no witnesses could provide any information. This left our family with only more questions and anguish.

I even got in touch with the Cleveland Police recently to inquire about whether there had been further developments in the case, but the Investigating Officer told me that the case had been "officially closed" from their end.

An Insurance Conundrum That Made Matters Worse

In the aftermath, we discovered that Arfath had a student loan for his education in the US for which he had a life insurance policy from Bajaj Allianz, secured as a condition of taking a loan from Avanse Bank to fund his education. With hope that this insurance policy might at least ease the financial burden on his grieving parents, we reached out to Bajaj Allianz to initiate a claim.

This marked the beginning of what would become an exasperating and painful journey. Bajaj Allianz subjected us to an extended claims process, with countless follow-ups and lengthy delays. After several months, they finally responded, requesting additional documentation, which we promptly provided.

Then, on 8 November, we received a registered letter from Bajaj Allianz informing us that the claim could not be processed, citing “suicide” as the reason for denial. It is important to note that no police investigation till date has indicated suicide; there was no suicide note or any behavioural indicators to suggest such a cause. This unfounded conclusion from Bajaj Allianz only added to the heartbreak of our already devastated family.

This policy was meant to cover Rs 40,75,334, providing much-needed financial relief to his family to repay the loan. Instead, Bajaj Allianz is citing a clause in the policy terms that, in the case of suicide, would only return a portion of the premium paid – Rs 9,233 – effectively denying the full claim.

(The Quint has reached out to Bajaj Allianz multiple times to ascertain their reason for concluding 'suicide' in Arfath's case but has not received a response yet. This story will be updated as and when they respond.)

To further compound the situation, the letter denying our claim was dated 7 October, yet we only received it by mail on 8 November. The postal receipt clearly shows that the letter was dispatched on 4 November, suggesting a deliberate delay by Bajaj Allianz. The letter mentioned a 30-day period to contest the decision, but due to this delay, we were left with no time to respond.

The postage date on the letter says 8 November 2024. 

But the letter was filed on 7 October 2024 (next image).

(Photo: Ahmed Mohammed)

(The Quint has also tried to find out from Bajaj Allianz on the reason for the delay in sending the letter. This story will be updated as and when they respond.)

My uncle, Arfath's father, is a civil contractor in Hyderabad, and his wife is a homemaker. They are not an affluent family; they had high hopes from Arfath, and took great pains to send him abroad for studies. If they do not get the entire insurance amount, I don't think they will be able to pay back the loan. They might even have to sell all their property if it comes down to that.

I am sharing this painful experience to raise awareness among families and students aspiring to study abroad. Insurance companies like Bajaj Allianz are quick to collect hefty premiums but are often unresponsive and evasive when it comes to honoring their promises. In our darkest hour, instead of supporting a grieving family, they chose to dismiss our valid claim on questionable grounds, prolonging our distress.

This is a call for accountability. Bajaj Allianz and similar companies should know that they cannot take their customers for granted. If they do not fulfill their obligations, why should we buy their policies? Why should anyone trust them? And are they not accountable to the authorities for undertaking their legal responsibility and doing what is right?

(All 'My Report' branded stories are submitted by citizen journalists to The Quint. Though The Quint inquires into the claims/allegations from all parties before publishing, the report and the views expressed above are the citizen journalist's own. The Quint neither endorses nor is responsible for the same.)