‘Procedural Delay Cannot Defeat Genuine Claims’: Bombay High Court on Health Insurance

The Bombay High Court recently held that insurance companies cannot reject genuine health insurance claims merely because the claim was filed beyond the time limit prescribed in the policy.

A Division Bench of Justices Bharati Dangre and Manjusha Deshpande observed that such “time-bar” clauses restricting a policyholder’s right to claim benefits are hit by Section 28 of the Indian Contract Act, 1872.

The Court directed United India Insurance Company to reimburse the claimant’s hospitalisation expenses along with 6% interest, holding that procedural technicalities cannot override substantive rights under an insurance contract.

[C.P. Ravindranath Menon v. United India Insurance Company]