Punjab News– The State Consumer Disputes Redressal Commission, Punjab, has expressed serious concerns over insurance companies rejecting customer claims on baseless grounds. The Commission, led by President Justice Daya Chaudhary and Member Simarjot Kaur, called on the Insurance Regulatory and Development Authority (IRDA) to take stringent measures against such practices.
Punjab Consumer Commission Criticizes Insurance Companies for Unfair Claim Rejections
Justice Chaudhary and Kaur emphasized the need for the IRDA to issue strict directives to insurance companies, ensuring that the rights of insured individuals are protected and that claim processing is conducted transparently. “We deem it appropriate to observe that most of the insurance claims are rejected by the Insurance Companies on baseless grounds. The same act had been done by the Insurance Company in the present case, therefore, we feel that there is urgent need to enforce the strict provisions, which may safeguard the genuine rights of the insured and complete transparency in the processing of claims,” they stated.
The Commission’s observations came while hearing appeals from HDFC ERGO General Insurance Company Limited and HDFC Bank Limited against a district consumer commission’s ruling in favor of a consumer, Shubh Lata. Lata’s husband had secured a housing loan from HDFC Bank in 2019 and insured it through HDFC ERGO’s Loan Credit Assure Policy. After his death in 2021 due to renal failure and acute kidney injury, Lata requested the insurance company to repay the loan under the policy. However, her claim was denied on the grounds that the medical condition was not covered under the policy’s “Major Medical Illnesses.”
In 2022, the district consumer commission ruled that HDFC ERGO had arbitrarily rejected the claim, in connivance with HDFC Bank. The State Consumer Commission’s recent observations further highlight the need for regulatory intervention to prevent such unfair practices by insurance companies.
The Commission’s call to action aims to safeguard the rights of insured individuals and ensure fairness and transparency in the insurance claim process, urging the IRDA to act decisively against malpractices.
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