Thane consumer commission orders insurance company to compensate policyholder for service deficiency

The Consumer Disputes Redressal Commission in Thane, Maharashtra, has ruled in favor of a policyholder and directed an insurance company to make compensation payments, citing deficiencies in its services. In an order dated September 5, Commission President Vijay C Premchandani and Member Poonam V Maharshi concluded that the complainant had successfully demonstrated his case against Star Health And Allied Insurance Co. Ltd.
The commission mandated that the insurance company fulfill the claim of Rs 33,500, including an 8 percent annual interest rate from June 2017 until full payment, in addition to awarding compensation of Rs 15,000 for mental distress and Rs 5,000 for complaint-related expenses. Diliprao D Mohite, a resident of Kisan Nagar in Wagle Estate, had obtained a medical insurance policy worth Rs 5.5 lakh from the insurer in 2013, paying a premium of Rs 23,976. After being discharged from the hospital, where the initial claim amount had been settled, Mohite approached the insurance company to claim the remaining medical expenses. However, the insurer declined to honor the request and rejected his claim.