Udupi: Consumer court orders insurance firm to refund withheld amount with interest

Mangalore Today News Network

Udupi, June 23, 2025: The Udupi District Consumer Disputes Redressal Commission has directed Star Health and Allied Insurance Company to pay a compensation of ₹40,178, along with 10% annual interest, to a policyholder for deficiency in service and engaging in unfair trade practices.

The complainant, Vikram from Bailkere in Thenkanidiyoor village, had taken a health insurance policy from the company and consistently renewed it. He was admitted to a private hospital in Udupi for treatment on May 22.

While the total medical bill exceeded the amount paid, the insurer reimbursed only ₹41,170 and declined the remaining ₹30,178, citing a “pre-existing illness” clause. Contesting this, Vikram approached the consumer forum, asserting he had no such medical history and was unjustly denied reimbursement.

Upon reviewing the case and supporting documents, the commission found that Star Health failed to provide evidence of any pre-existing condition. Consequently, the bench ruled in Vikram’s favour.

The commission ordered the insurer to pay the denied sum of ₹30,178 with 10% interest from May 25, the date the claim was rejected, until full settlement. Additionally, the company has been asked to pay ₹10,000 towards compensation for mental agony and legal costs.

The insurer has been given 30 days from the receipt of the order to comply.

Advocate Vivekananda Mallya Karkala represented the complainant.