Kurnool Commission Scrutinizes Insurer Claim Repudiation Practices

The District Consumer Disputes Redressal Commission in Kurnool began scrutinizing insurance companies' claim repudiation practices. In a specific case, the commission directed HDFC ERGO General Insurance Company to pay Rs 1 crore to a policyholder's nominee. The insurer had rejected the claim over alleged income inflation, but the court ruled that the insurer must prove the income declaration was knowingly false and amounted to deliberate material misrepresentation.

The ruling establishes a legal standard requiring insurers to demonstrate deliberate misrepresentation when rejecting a claim. This action highlights regulatory scrutiny over insurance practices in Kurnool and increases liability risks for insurance providers.