A consumer protection body in Mumbai has ordered Manipal Cigna Health Insurance Company to reinstate a health insurance policy and compensate a client ₹3 lakh for the mental agony caused. The client, a Mumbai resident, had purchased a health insurance policy from Manipal Cigna in 2018. However, the insurance company cancelled the policy in 2020 without providing any valid reason.
The client had paid all the premiums on time and had not made any claims under the policy. Despite this, the insurance company cancelled the policy, leaving the client without any health insurance coverage. The client approached the consumer protection body, seeking reinstatement of the policy and compensation for the mental agony caused.
The consumer protection body, after hearing the case, found that Manipal Cigna had acted unfairly and unreasonably in cancelling the policy. The body observed that the insurance company had not provided any valid reason for cancelling the policy and had not followed the proper procedure for cancellation.
The consumer protection body ordered Manipal Cigna to reinstate the health insurance policy with immediate effect. The body also directed the insurance company to compensate the client ₹3 lakh for the mental agony caused due to the cancellation of the policy. The body observed that the client had suffered mental distress and anxiety due to the cancellation of the policy and that the insurance company was liable to compensate the client for the same.
The order of the consumer protection body is a significant victory for the client, who had been left without any health insurance coverage due to the arbitrary cancellation of the policy. The order also serves as a warning to insurance companies to act fairly and reasonably in their dealings with clients. The consumer protection body’s decision highlights the importance of protecting the rights of consumers and ensuring that insurance companies act in a transparent and accountable manner.
The client’s lawyer welcomed the order, stating that it was a significant victory for the client and a warning to insurance companies to act fairly. The lawyer also stated that the order would help to prevent similar cases of arbitrary cancellation of policies in the future. The case highlights the importance of consumer protection and the need for insurance companies to act in a fair and transparent manner.