My father is no more. He was a bank ex-staff. Mother is now family pensioner for last few years. So bank has all records that my father is dead.
Bank offers ex-staff medical insurance to ex-staff and their spouse. This year bank's portal for application/online submission for that insurance scheme has some fundamental errors in choosing correct options and I have already brought it to their notice thru formal emails.
Insurance company says policy can be issued to self (ex-staff) or family float (both ex-staff and their spouse) or only surviving spouse (surviving spouse is applicable to us). But such an option of only surviving spouse does not exists in their system.
Since the window to submit application is very narrow and online is compulsory, if bank does not fix this issue in time, chances are that we may have to exercise family float option available that will issue policy in name of my mother as well as father.
So due to data error/incorrect options, policy will get issued in name of my father who is no more and we also pay double premium due to family float option.
For whatever the reasons be, is it legally incorrect to issue insurance policy in name of a dead person, even due to data error? If bank does not fix the issue in time and we get the policy in father's name can we complaint to them and also ask for proportionate refund of premium (from family float to single)?
Bank is a mediator here and will only pass data to insurance company for processing.
The issue has not yet happened, but the way things are progressing, likelihood of this being occurring is high.