Udupi: The Udupi District Consumer Disputes Redressal Commission has ruled in favour of a local resident, ordering Star Health and Allied Insurance Company to pay Rs 40,178 along with 10% annual interest for engaging in unfair trade practices and service deficiency.
The complainant, Vikram, hailing from Bailakere in Tenkanidiyur village, had been a loyal customer holding a long-term health insurance policy with the company. On May 22, 2024, he was admitted to a private hospital in Udupi due to swelling on the left side of his groin. Although the overall medical bill was significantly higher, the insurer reimbursed only Rs 41,170, citing a “pre-existing condition” — a reason not backed by any clause in the policy.
Frustrated by this partial settlement, Vikram approached the District Consumer Forum through his legal counsel. After evaluating the submitted documents and arguments, the commission found no evidence of any prior illness and ruled that the insurance company had wrongfully denied a portion of the claim.
The forum directed the insurer to pay the remaining Rs 30,178, with interest calculated from May 25, 2024, until the dues are fully cleared. Furthermore, an additional Rs 10,000 was awarded as compensation for emotional distress and legal fees.
The decision was issued by Commission President Sunil Timasareddy and Member Sujata B Koralli. Advocate Vivekananda Mallya represented Vikram in the case.