Consumer Court orders Star Health to pay Rs 1.2 lakh for rejecting Corona health claim

KOCHI: The Ernakulam District Consumer Disputes Redressal Court has ordered a compensation of Rs 1,20,000 from an insurance firm, that rejected a claim for a Covid-related health insurance scheme 'Corona Rakshak Policy'.

The action was taken on the complaint registered by Muvattupuzha native K R Prasad. Star Health Insurance Company has to pay Rs 1 lakh as claim amount and Rs 20,000 as compensation within 30 days. The court held that the company's action was illegal and inhumane. The policy was taken in July 2020. In January 2021, Prasad got treatment for four days at a private hospital in Muvattupuzha after suffering from Covid-19. However, the insurance company rejected the claim for the medical expenses citing technical anomalies.

The insurance company rejected the claim on the grounds that Prasad had concealed the information that he had 'Bronchitis Asthma.' Meanwhile, in the discharge summary, the possibility of 'Bronchitis Asthma’ was doubted but no clear conclusions were made. The court said it was unethical on the part of the company to find ways for quick profits.

Insurance companies earlier introduced COVID-19 special policies with the promise of covering the increased cost of treatment for the disease. The court order states that denial of medical benefits due to technicalities cannot be allowed.

The order was passed by the bench consisting of commission President D B Binu, members Vaikom Ramachandran, and T N Srividya. Advocate Tom Joseph appeared for the petitioner.