Consumer Court slaps Rs. 5k penalty on United India Insurance for denying medical claim

A consumer court imposed a Rs. 5,000 penalty on United India Insurance for denying a medical claim. The court found that the insurance company had acted in bad faith by rejecting the claim without proper justification. The case involved a policyholder who filed a claim for medical expenses, which was denied by the insurance company on the grounds of non-disclosure of a pre-existing condition. The court ruled that the insurance company failed to provide sufficient evidence to support its denial and ordered the payment of the claim along with the penalty for causing mental harassment to the policyholder.