New Delhi, Aug. 26 -- A home loan insurance policy does not necessarily protect a borrower's family from the outstanding loan if the policyholder is found to have withheld material information about a pre-existing illness. A recent National Consumer Disputes Redressal Commission (NCDRC) order shows why accurately filling out the insurance proposal form can be critical.

In an order dated 17 August 2026, the NCDRC dismissed a plea filed by the family of Mohammad Hussain and upheld ICICI Prudential Life Insurance Co. Ltd.'s decision to reject a claim under a home loan insurance policy. The Commission found that Hussain had failed to disclose material information about his health when taking the insurance cover.

Hussain had taken a home loa...