Insurance Giant Ordered to Compensate Customer for Partial Claim Reimbursement

The District Consumer Dispute Redressal Commission has directed New India Assurance Company Limited to pay Rs 50,000 in compensation, in addition to reimbursing a customer the remaining amount of a medical claim with interest. The customer, Nishchal Jain, was initially only paid a portion of his valid claim, leading to financial and emotional hardship.

The District Consumer Dispute Redressal Commission has ordered New India Assurance Company Limited to compensate a customer, Nishchal Jain, with Rs 50,000 for only partially paying his valid medical insurance claim.

Initially, the company reimbursed only around Rs 2.15 lakh of a Rs 4.77 lakh claim. The commission has directed the company to pay the remaining Rs 3.25 lakh with interest, along with litigation costs.

The commission found the insurance company's decision to deny part of the claim arbitrary and contrary to policy terms, leading to financial and mental distress for Jain.

(With inputs from agencies.)