Insurers Cannot Introduce New Repudiation Grounds : Delhi State Commission Holds National Insurance Liable

The Delhi State Consumer Commission ruled that insurers cannot introduce new grounds for repudiation after an insurance claim has been filed. The case involved a dispute with National Insurance, where the insurer raised new reasons for rejecting a claim after it had already been filed. The Commission found that such actions were unfair and ordered the insurer to settle the claim. This decision is significant because it upholds consumer protection in the insurance industry, ensuring that insurers cannot change the terms or reasons for repudiating a claim once it has been made. It provides greater transparency and accountability, benefiting policyholders who may otherwise face unjust claim denials based on new or changing criteria after filing.