Skip to main content

Insurer pays for hush-hush policy tweak, claim denial - Consumer Forum

An insurance company cannot make changes unilaterally or surreptitiously to the disadvantage of the insured, observed a consumer forum as it directed the New India Assurance Company Ltd to pay the insured amount of Rs 1.59 lakh along with Rs 69,000 compensation to a Chowpatty-based man, Kaushik Pandya, after it wrongly repudiated his wife's mediclaim.

Pandya had told the forum that he had obtained information under the RTI Act about the number of claims received and paid by the insurance company for treatment similar to that undergone by his wife.

"It was revealed that of the total 125 claims reported, the company had paid 28 claims and rejected 97 during the year 2009-10," he said.

Pandya told the forum that his wife, Rupa, suffered from age-related macular degeneration in her left eye from 1989 and was unable to see with that eye.

In 2009 Rupa had to undergo treatment for the illness in her right eye, which remained bandaged for 24 hrs. As she also suffered from hypertension and diabetes, she was admitted to a hospital on doctors' advice.

When Pandya filed for insurance, it was rejected. He filed a complaint in the forum on October 29, 2010.

The insurance company contended that the claim was denied as the treatment fell outside the scope of the health policy. It stated that in the case of the specific disease, there was no need for hospitalization. The company contended that though the treatment injection is given in the operation theatre, in view of the nature of treatment it falls outside the scope of health policies.

The forum observed that rejection of the claim was based on a circular dated February 9, 2009, which excluded the treatment. The forum said that the circular was an internal one and Pandya had rightly submitted that as he was not privy to it and it could not be binding on him.

"We hold that the repudiation made by the opposite party regarding the claim lodged by the complainant about the treatment provided by admitting his wife in the hospital and therefore, not payable is not justifiable," the forum said.

Article referred: http://articles.timesofindia.indiatimes.com/2013-06-16/mumbai/40006224_1_consumer-forum-claim-denial-insurance-company

Comments

Most viewed this month

The recovery of vehicles by the financier not an offence - SC

Special Leave Petition (Crl.) No. 8907  of 2009 Anup Sarmah (Petitioner) Vs Bhola Nath Sharma & Ors.(Respondents) The petitioner submitted that  respondents-financer had forcibly taken away the vehicle financed by them and  illegally deprived the petitioner from its lawful possession  and  thus,  committed  a crime. The complaint filed by the petitioner had been  entertained  by  the Judicial Magistrate (Ist Class), Gauhati (Assam) in Complaint Case  No.  608 of 2009, even directing the interim custody of the vehicle (Maruti  Zen)  be given to the petitioner vide order dated  17.3.2009.  The respondent on approaching the Guwahati High  Court against this order, the hon'ble court squashed the criminal  proceedings  pending   before  the  learned Magistrate. After hearing both sides, the Hon'ble Supreme Court decided on 30th...

When debt is bona fide disputed and the defence is a substantial one, the court will not wind up the company

In SHITAL FIBERS LTD.  vs  INDIAN ACRYLICS LIMITED, as per the respondent, appellant had made a payment of Rs.61,83,218/­. However, there was an outstanding balance of Rs.8,92,723/­ as on 28.7.2008. Since despite repeated requests, balance amount was not paid, the respondent issued a statutory notice to the appellant. The same was duly responded to. As the payment was not made despite notice being duly served on the appellant, the respondent filed the aforesaid Company Petition seeking winding up of the present appellant for its inability to pay admitted debts. The learned Company Judge vide order dated 28.9.2015 admitted the Company Petition. However, while doing so, the learned Company Judge observed, that since the appellant was an on­going concern, an opportunity should be granted to it to settle the accounts with the respondent by 31.12.2015. Only in case of failure of the settlement, the citation was directed to be published. On appeal, the Division Bench of the High Cou...

Abusing in-laws a ground for divorce: SC

Abusing in-laws and not allowing them to reside in the matrimonial home by a woman amounts to cruelty to her spouse, ground enough for grant of divorce, the Supreme Court has ruled while allowing an NRI's plea for legal separation from his wife. A bench of Justices Vikaramajit Sen and A M Sapre said such incidents could not be termed as "wear and tear" of family life as held by Madras High Court which had said that a couple must be prepared to face such situations in matrimonial relationship. The NRI had filed a divorce petition alleging that his wife was abusive to his family members and did not allow his parents and siblings to stay in his house when they visited the US. Referring to an incident, the husband told the court that his wife had once locked him and his sister out of the house and abused them saying they belonged to a 'prostitute family'. She refused to allow her sister-in-law to enter the house and even lodged a police complaint against her hu...