In a significant ruling, the Shamli District Consumer Disputes Redressal Forum imposed a fine of ₹82,145 on Star Health & Allied Insurance Company for failing to honor an insurance claim, despite the premium being paid in full. The decision underscores the importance of protecting consumer rights and penalizing negligent practices by insurance providers.
ContentsCase BackgroundCourt Decision and PenaltyImplications for Consumer Rights
FutureCrime Summit 2026: Registrations to Open Soon for India’s Biggest Cybercrime Conference
Case Background
The complainant, Praveen Kumar Vashishth, a resident of Khedi Karmu village in Shamli, had purchased a health insurance policy (Policy No. P/161215/01/2019/000132, Customer ID: 9226361-1) on May 3, 2018, completing all necessary formalities. In December 2018, Praveen was admitted to Anant Multi Specialty Hospital & Trauma Center, Shamli, due to dengue fever. His hospitalization incurred expenses of ₹75,000. Despite submitting all required documents for his claim (Claim No. 0518921) and receiving assurances from the insurer’s surveyor for prompt payment, the company repeatedly rejected the claim without valid reason and demanded additional documents, causing financial, mental, and physical distress to Praveen.
Court Decision and Penalty
The Shamli District Consumer Disputes Redressal Forum, chaired by Hemant Kumar Gupta with members Abhinav Agrawal and Amarjit Kaur, heard the case and ruled in favor of Praveen. The court ordered Star Health Insurance to pay ₹72,143 as the claim amount, along with 6% annual simple interest from the date of claim rejection until payment, and ₹10,000 as litigation expenses, totaling ₹82,145. The company was directed to comply with the order within 45 days.
Implications for Consumer Rights
The verdict is being hailed as a milestone in the protection of consumer rights, sending a strong message that insurance companies cannot delay or deny legitimate claims arbitrarily. Praveen welcomed the decision, calling it relief for all individuals affected by the negligence of insurance providers. Local communities and social organizations have praised the court’s ruling, viewing it as a benchmark for strict action against service deficiencies and consumer exploitation.
This case highlights the judiciary’s crucial role in ensuring accountability among insurance providers and protecting citizens from unfair business practices.
Original source: The420.in
Leave a Reply