CHANDIGARH, India — An insurance company has been directed to pay Rs 1 crore to the widow of a Covid-19 victim after a tribunal ruled that lifestyle diseases cannot be used as grounds for claim rejection. The case was decided on October 12, 2023, by the Chandigarh District Consumer Disputes Redressal Commission.

The commission found that the insurer’s initial denial of the claim, citing the deceased’s pre-existing health conditions, was unjustified. “Lifestyle diseases do not provide a valid reason for denying insurance coverage related to Covid-19,” the tribunal stated.

The deceased, who passed away in May 2021, had a life insurance policy that the insurer initially refused to honor after attributing the death to lifestyle-related health issues. The wife of the deceased filed a complaint, leading to the tribunal’s decision.

This ruling highlights the ongoing challenges faced by families of Covid victims in securing insurance benefits. Many insurance claims related to the pandemic have been contested, with companies frequently citing various pre-existing conditions as reasons for denial.

The tribunal’s order mandates the insurer to not only pay the claim amount but also cover legal expenses incurred by the victim’s family during the proceedings.

In the wake of the pandemic, numerous insurance disputes have arisen, raising questions about policy exclusions and the responsibilities of insurers toward beneficiaries of Covid-related claims.

Source: news source