Consumer Commission Holds Star Health Liable For Arbitrary Claim Deductions, Orders Payment Of ₹1.55 Lakh

The District Consumer Disputes Redressal Commission, Chandigarh, partly allowed a complaint against Star Health & Allied Insurance Co. Ltd. for arbitrary deductions in a mediclaim settlement.

The Commission held that the insurer failed to prove that policy exclusions were properly disclosed to the insured at the time of issuance.

The Court observed that unilateral deductions without cogent justification amounted to a deficiency in service.

Accordingly, it directed Star Health to pay ₹1.55 lakh towards the claim along with 9% interest from the date of repudiation and ₹20,000 as compensation for mental harassment and litigation costs.

[Rama Kant Verma v. Star Health & Allied Insurance Co. Ltd.]