Bihar State Commission Holds New India Assurance Co Liable For Wrongfully Repudiating Genuine Death Claim

The Bihar State Consumer Disputes Redressal Commission ruled against New India Assurance Co. Ltd. for wrongfully repudiating a genuine death claim. The case involved the insurer denying a claim citing non-disclosure of material facts related to the deceased's health. The Commission found that the insurer failed to prove the deceased's pre-existing medical conditions were withheld intentionally. The insurer's reliance on a delayed intimation of hospitalization was deemed unjustified as the delay did not affect the claim. The Commission ordered the insurer to pay the claim amount along with interest and compensation for mental agony and litigation costs. This decision underscores consumer protection under the Consumer Protection Act, ensuring fair treatment and accountability in insurance claim settlements.