New Delhi, June 25 -- Ahmedabad-based Ashok Parekh lost his 32-year-old daughter to sudden cardiorespiratory arrest aggravated by covid pneumonitis. She had taken a home loan of Rs.32 lakh from a private sector bank.

"As far as I know, she was told to mandatorily buy an insurance policy that would take care of the outstanding loan amount if something happened to her. She paid around Rs.75,000 as premium for it," Parekh said.

After her death, Parekh approached the insurer only to discover that the policy was a critical illness cover and not a life insurance policy. Since cardiorespiratory arrest was not covered under the policy, the claim was rejected.

"We were told that had it been a heart attack, it would have been covered. Cardioresp...