A Brazilian court has ordered Caixa Econômica Federal to pay R$ 639,000 to the family of a man whose life insurance claim was denied due to alleged cocaine use and supposed intent to commit suicide.
In a significant ruling, a court in Santos, Brazil, has mandated Caixa Econômica Federal’s insurance subsidiary, Vida e Previdência, to compensate the family of a deceased policyholder almost R$ 640,000. The denial of the claim was based on the insurer's assertion that the man had used cocaine and exhibited suicidal intentions. However, the court found insufficient evidence to support these claims, asserting that the circumstances surrounding the man's death did not imply self-harm.
The deceased, who had been undergoing psychiatric treatment, died suddenly in January 2025 while out in Praia Grande after experiencing a medical emergency. Family members contended that he had been suffering from severe psychological disorders and had a psychotic episode shortly before his death. Toxicology reports suggested that his passing resulted from pulmonary edema due to cocaine use, but the court ruled that such drug use alone does not substantiate claims of suicidal intent, as alleged by the insurer.
This ruling has broader implications for insurance companies in Brazil, as it sets a precedent regarding the requirements for denying claims. The decision underscores the courts' willingness to challenge insurers’ determinations, especially concerning mental health and drug use, parallel to the ongoing discussion around insurance coverage policies and consumer rights in Brazil.
