Landmark Judgements — Cite These in Court
LIC of India v. Consumer Education Research Centre (1995) 5 SCC 482
Supreme Court
LIC is a service provider under CPA. Arbitrary rejection of insurance claim is deficiency in service.
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Om Prakash v. Reliance General Insurance (2017) 9 SCC 724
Supreme Court
Insurer who delays claim settlement is liable to pay interest on the claim amount + compensation for harassment.
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National Insurance Co. v. Nitin Khandelwal (2008) SC
Supreme Court
Vehicle theft claim cannot be repudiated on a minor technical ground if there is no fraudulent intent by the insured.
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Frequently Asked Questions
Which is better — Insurance Ombudsman or Consumer Forum? +
Ombudsman is faster and free but limited to ₹30 lakh (personal lines). Consumer forums can award higher mental agony compensation. For legitimate large claims, consumer forum is stronger.
Can the insurer reject a claim for a minor policy condition violation? +
Supreme Court in National Insurance Co. v. Nitin Khandelwal held that minor technical violations cannot be used to repudiate a genuine claim. Insurers must prove that the breach was material to the risk.
What is the time limit to dispute an insurance rejection? +
2 years from the date of the rejection letter (cause of action arises on repudiation date).
What compensation can I get beyond the claim amount? +
Courts award interest @ 9-12% p.a. on the claim amount from the date of repudiation, plus ₹25,000–₹1 lakh for mental agony and harassment.