‘My cousin died by drowning in the US. Bajaj Allianz denies life insurance claim due to suicide

On By Pranco

Earlier this year, tragedy struck our family when my younger brother, Abdul Arfath Mohammedmissing in Cleveland, Ohio.

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

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

Despite tireless efforts by our family, the Cleveland Police Department, and the FBI (Federal Bureau of Investigation), weeks passed without any information regarding his whereabouts. The devastating news came a month later when we learned on April 9 that Arfath’s body had been discovered in Cleveland’s Lake Erie, marking a tragic end to our search.

After extensive paperwork and coordination with the Indian embassy, ​​Arfath’s remains were eventually returned 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 all kinds of support in our grief. But for my uncle, Mohammed Saleem, the loss was excessive. He had lost his only son, with no clear answers as to why.

After the funeral, I continued to pursue the authorities for details about the circumstances of Arfath’s death.

After almost two months, I received the Cleveland Coroner’s report, which confirmed the cause of death as “drowning” with the addition of “indeterminate manner.”

That is to say, no further conclusion could be drawn as to how this tragic incident occurred – whether it was an accident, a slip-and-fall, or something more sinister. The area where his body was found had no CCTV and witnesses were unable to provide information. This only left our family with more questions and anxiety.

I even recently contacted Cleveland Police to inquire if there had been any further developments in the case, but the investigating officer told me that as of their end the case was “officially closed.”

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, as a condition of taking a loan from Avanse Bank to finance his education. Hoping that this insurance policy could at least ease the financial burden on his grieving parents, we contacted Bajaj Allianz to file a claim.

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

We then received a registered letter from Bajaj Allianz on November 8 informing us that the claim could not be processed, citing ‘suicide’ as the reason for the denial. It is important to note that no police investigation to date has pointed to suicide; there was no suicide note or any behavioral indicators indicating such a cause. This baseless conclusion by Bajaj Allianz has only added to the heartbreak of our already devastated family.

This policy was intended to provide coverage Rs 40,75,334thus providing his family with much-needed financial assistance to repay the loan. Instead, Bajaj Allianz cites a clause in the policy terms that, in the event of suicide, would refund only a portion of the premium paid – Rs 9,233 – effectively denying the entire claim.

(The Quint has contacted Bajaj Allianz several times to determine the reason for concluding ‘suicide’ in Arfath’s case, but has yet to receive a response. This story will be updated as they respond.)

To further aggravate the situation, the letter rejecting our claim was dated October 7, but we did not receive it in the mail until November 8. The postal receipt clearly shows that the letter was sent on November 4, indicating a deliberate delay by Bajaj Allianz. The letter stated a 30-day deadline to challenge the decision, but this delay did not allow us time to respond.

  • The letter shows the sending date as November 8, 2024. But the letter was deposited on October 7, 2024 (next image).

    (Photo: Ahmed Mohammed)

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

My uncle, Arfath’s father, is a civil contractor in Hyderabad, and his wife is a housewife. They are not a wealthy family; they had high hopes for Arfath and made great efforts to send him abroad for study. If they don’t get the full insurance amount, I don’t think they can pay back the loan. If push comes to shove, they may even have to sell all their belongings.

I share this painful experience to raise awareness among families and students who want to study abroad. Insurance companies like Bajaj Allianz are quick to collect high premiums, but are often unresponsive and evasive when it comes to delivering on their promises. In our darkest hour, rather than support a grieving family, they chose to reject our valid claim on dubious grounds, prolonging our distress.

This is a call for accountability. Bajaj Allianz and companies like it need to know that they cannot take their customers for granted. If they don’t meet their obligations, why should we buy their policies? Why would anyone trust them? And are they not accountable to the authorities for taking their legal responsibility and doing what is right?

(All stories under the brand name ‘My Report’ are submitted by citizen journalists to The Quint. Although The Quint investigates the claims/allegations of all parties before publishing; the report and the views expressed above are those of the citizen journalist. The Quint does not endorse this and is not responsible for it.)

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