Mohali: Insurer told to pay over ₹6 lakh over rejected mishap claim

Mohali – The District Consumer Disputes Redressal Commission has directed SBI General Insurance to compensate a claimant with more than ₹6 lakh after it turned down a mishap claim.

The commission’s order, dated recently, specifies that SBI General must pay ₹6,07,213.39 along with interest at six percent per annum from December 26, 2024, the date the claim was repudiated, until the amount is fully settled. This directive comes after the claimant approached the consumer forum seeking redressal for the denied insurance payment.

The case highlights the commission’s role in balancing the interests of policyholders against insurers who occasionally reject claims on technical grounds. While the exact nature of the mishap was not detailed in the order, the consumer had filed a complaint alleging that the insurer acted unfairly by refusing the claim without adequate justification.

Consumer disputes in the region have been rising, with many individuals turning to the District Consumer Disputes Redressal Commission for help. The commission, a statutory body established under the Consumer Protection Act, has the authority to examine the merits of a case, hear evidence, and issue binding orders. Its decisions are intended to protect consumers from deficiency in service or unfair trade practices by service providers, which include insurance companies.

In this instance, the commission found that SBI General’s repudiation of the claim was not in line with the terms of the policy or the prevailing legal standards. The order underscores that insurers must honor legitimate claims and cannot evade liability by citing vague or incomplete reasons. The interest component, calculated from the date of repudiation, serves as a deterrent against undue delay in processing payments.

The directive also sends a broader message to other insurers operating in the Chandigarh‑Mohali belt. Industry observers note that such orders can influence corporate policies, prompting companies to review claim rejection criteria and improve grievance redressal mechanisms. For policyholders, the judgment reinforces the importance of understanding policy wordings and maintaining proper documentation in the event of a claim dispute.

While the commission has not specified a timeline for the payment, it has directed SBI General to comply promptly. Failure to adhere to the order could attract further penalties, including contempt proceedings. The consumer who initiated the complaint is likely to receive the due amount soon, providing relief after a period of financial strain.

The order is consistent with a series of recent consumer protection actions across Punjab and Haryana, where courts and commissions have been increasingly active in safeguarding consumer rights. As insurance is a critical component of personal finance, timely and fair claim settlement remains a key concern for residents.

In summary, the District Consumer Disputes Redressal Commission’s directive to SBI General to pay over ₹6 lakh, inclusive of interest from December 26, 2024, exemplifies the commission’s commitment to ensuring that insurers fulfill their obligations. The decision serves both as a remedy for the individual claimant and as a preventive measure for future disputes.

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**Tags:** consumer rights, insurance, Mohali, District Consumer Disputes Redressal Commission, SBI General

**Focus Keyword:** SBI General

Source: Hindustan Times