Udaipur: The Permanent Lok Adalat has directed Star Health and Allied Insurance Company Limited to pay a health insurance claim of ₹2,63,996 along with 6% annual interest, while also awarding ₹21,000 for mental agony and ₹11,000 towards litigation expenses.
The court strongly criticised the insurance company and observed that rejecting a valid claim merely on the pretext of seeking minor additional documents amounts to deficiency in service and an unfair trade practice.
Claim Rejected Despite Documents
According to the case, Pawan Shekhar, son of Chandrashekhar Suthar and a resident of Navania in Vallabhnagar, filed an application before the Permanent Lok Adalat through advocate Chetan Chaudhary on February 11, 2025, against Star Health and Allied Insurance Company Limited.
The complainant had undergone surgery at Sims Hospital in Ahmedabad for stones in his abdomen. He incurred a total expenditure of ₹2,63,996 for the hospital treatment and the subsequent removal of the J-stent.
He subsequently submitted a claim to the insurance company. Despite the documents being complete, the company rejected his claim on June 11, 2024.
Court Directs Payment Within One Month
A bench comprising Permanent Lok Adalat Presiding Officer and Chairman Mahendra Singh Sisodia, member Pramod Kumar Dani and member Dr Surbhi Menaria (Dhing) accepted the complainant’s application and rejected the arguments put forward by the insurance company.
The bench ordered the company to pay ₹2,63,996, along with 6% annual interest from June 11, 2024, until recovery.
The insurance company has also been directed to pay ₹21,000 for mental agony and ₹11,000 towards case expenses, separately, within one month.
The order states that if the amount is not paid within the stipulated period, the interest rate will be increased to 9% per annum.
Bhupendra Singh Chundawat is a seasoned technology journalist with over 22 years of experience in the media industry. He specializes in covering the global technology landscape, with a deep focus on manufacturing trends and the geopolitical impact on tech companies. Currently serving as the Editor at Udaipur Kiran, his insights are shaped by decades of hands-on reporting and editorial leadership in the fast-evolving world of technology.