Insurance Company Can't Harass Insured By Demanding Unnecessary Documents, Chandigarh District Commission Holds TATA AIG General Health Liable

The District Consumer Disputes Redressal Commission-II, U.T. Chandigarh bench, comprising Amrinder Singh Sidhu and B. M. Sharma, held TATA AIG General Health Insurance Company Ltd liable for unjustly repudiating a claim under a "Health Companion" policy. The complainant incurred Rs. 1,95,000/- in medical expenses but faced harassment from the insurer, who demanded unnecessary documents and falsely rejected the claim. The commission emphasized the insurer's duty to process claims fairly and criticized tactics to avoid obligations. Citing legal precedent, it ordered the insurer to reimburse the claim amount with 9% interest per annum.