Consumer Commission Orders HDFC Life to Pay Rs 50.60 Lakh for Wrongfully Denying Insurance Claim
The Assam State Consumer Disputes Redressal Commission has directed HDFC Standard Life Insurance Company Ltd. to pay Rs 50.60 lakh to a policyholder's son after the company wrongfully rejected a Rs 50 lakh insurance claim. The commission found the insurer guilty of deficiency in service.
A bench comprising President Justice Malasri Nandi and Member Tapas Kumar Ghosh heard the complaint filed by the son, who was the nominee of the policy. The complaint challenged the denial of the claim on grounds of alleged pre-existing illnesses of the father, the policyholder.
In its order dated 29 June, the commission observed that the insurer's investigation was faulty and caused unnecessary hardship to the complainant. The commission stated: 'Due to their faulty findings and investigation, the complainant had to suffer a lot for his claim unnecessarily. Hence, such conduct of the opposite parties amounts to deficiency in their service.'
The commission noted that medical tests conducted before issuing the policy did not reveal any concealment by the policyholder. Therefore, the insurer could not deny the claim based on pre-existing conditions. The order includes the claim amount along with compensation for the delay and mental agony caused to the complainant.
The judgment underscores the responsibility of insurance companies to conduct thorough assessments at the time of policy issuance and to honour legitimate claims without arbitrary rejection.
