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Claims Which are Genuine cannot be Rejected on Grounds of Delays

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The Supreme Court’s new ruling has declared that insurance companies will no longer be able to reject claims made by customers only on the basis of delayed filing. This is a welcome development for customers, especially those who have car insurance plans since they do not have to worry about claims getting rejected even if there is any delay in submitting their claim documents on account of specific circumstances.

This ruling was issued by the Supreme Court bench consisting of Justices S. Abdul Nazer and R.K. Agrawal who were hearing a case between a customer and a general insurance company that was running for a long time. The court ruling stated that in case the reason behind the delay of filing a claim is explained suitably, it cannot be turned down only on the grounds of the delay. Also, it will be unfair to turn down claims which are genuine and verified by investigators.

The Supreme Court bench also stated that the confidence of customers will be hindered if claims are rejected only on technical grounds. The Supreme Court put verdicts issued by several consumer courts aside and emphasized how the Consumer Protection Act strives to offer more protection for customer interests and hence it is helpful legislation that is deserving of a more liberal perspective. The Supreme Court also stated that this should not be missed while claims are considered under this Act.

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Shailesh Kumar

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