Insurance Giant Ordered to Compensate Customer for Partial Claim Reimbursement

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.)