Insurance company ordered to pay over ₹10 lakh to Coimbatore resident for non-payment of claim

The District Consumer Disputes Redressal Commission in Coimbatore on Tuesday ordered an insurance firm to pay over ₹10 lakh to a policyholder, who was allegedly denied settlement of a medical insurance claim.

The Commission’s president R. Thangavel and member P. Marimuthu issued the direction to Star Health and Allied Insurance Co. Ltd. on a petition filed by a resident of Park Avenue in Coimbatore.

Partly allowing the complaint, the Commission directed the firm’s managing director in Chennai and the branch manager of its office on Thadagam Road in Coimbatore to reimburse ₹10 lakh to the complainant under the insurance policy. It also directed the firm to pay ₹10,000 as compensation for the mental agony caused due to deficiency in service and ₹5,000 towards the cost of proceedings. The total sum should be paid to the complainant within a period of one month from the date of receipt of the order.