Insurer Cannot Rely On Exclusion Clause If Reason For Rejection Is Not Specified: NCDRC

The National Consumer Disputes Redressal Commission (NCDRC) ruled that insurers must clearly specify the reason for rejecting a claim under an exclusion clause. The commission emphasized that vague or ambiguous reasons for denial are unacceptable and that the insurer must provide a clear and specific explanation. This ruling strengthens consumer rights in insurance claims and ensures transparency and accountability in insurance contracts.