The Supreme Court ruled that if the policyholder has concealed his drinking habit while taking the policy, then the insurance companies can reject the claim. The Bombay High Court also said that the money received under mediclaim cannot be deducted from the medical expenses compensation.
New Delhi: The Supreme Court has ruled that insurance companies can reject alcohol-related health claims if the policyholder has concealed his drinking habits while buying the policy. In its verdict, the court upheld the decision of the insurance company to reject the claim of a policyholder under the company’s plan during hospitalization. He had given wrong information about his alcohol consumption habit.
Insurance company rejected the claim
The Supreme Court bench headed by Justice Vikram Nath gave the verdict on March 3 after considering the appeal filed by the insurance company against the order of the National Consumer Disputes Redressal Commission. The insurance company was directed to pay Rs 5,21,650 and other costs. The person who took the policy died after being hospitalized for a month. The insurance company rejected the claim of the man’s wife on the grounds of hiding the information about drinking alcohol.
Mediclaim money cannot be deducted: HC
The Bombay High Court has said that the money received by a person under a mediclaim policy cannot be deducted from the compensation amount given to the claimant for medical expenses under the provisions of the Motor Vehicles Act. The court said that the money under the mediclaim policy is received as per the agreement between the claimant and the insurance company.
