A consumer court in Karnal, Haryana has directed Tata AIG General Insurance Company Ltd. to pay over ₹60,000 to a policyholder after rejecting his mediclaim on the basis that he allegedly hid a pre‑existing disease.
The insurer had refused to reimburse ₹73,378 spent by the claimant, Bhag Singh, for treatment, alleging non‑disclosure of a health condition at the time of policy purchase. Singh maintained that he had disclosed all medical details and the company provided no evidence to back its claim.
The District Consumer Disputes Redressal Commission (DCDRC) ruled in Singh’s favour, reprimanding the insurer for failing to substantiate its allegation and highlighting that insurance companies often prioritise premium collection over claim settlement.
To balance documentation discrepancies, the court slightly reduced the award from the full claim amount but upheld the insurer’s obligation to honour the mediclaim, reinforcing consumer protections in health insurance disputes.
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