Insurance companies are usually not obligated to make payment to the families of clients who died in connection with alleged criminal activities, industry sources said today.

They were responding to the case of Vasanthi Perumal, widowed by a police shooting, who had complained that her husband's insurance company refused to pay up.

Her claim was rejected by the company, MCIS Zurich Insurance Bhd, on the grounds that her husband, Anthony Ponnusamy, had died in pursuance of a criminal case.

V Nathan, the adjuster who investigated Ponnusamy's case for MCIS Zurich, said he was "quite convinced" that Vasanthi's claim should be denied.