There are other examples:
* A man had invested Rs 59,820 in an insurance policy, Kotak Capital Multiplier Plan of Kotak Mahindra Mutual Life Insurance Ltd. He was told his money would double in five years. On maturity, he was paid Rs 52,800. Last month, the consumer forum pulled up the company for selling the policy to the man through unsolicited calls and, on maturity, paying him less than his investment. The forum said the name of the policy itself was misleading. The company was fined Rs 7 lakh.
n A doctor’s hospitalisation expenses came to nearly Rs 42,000. His insurance company refused to reimburse the cost on the ground that he had not given the company a week’s notice before hospitalisation. The consumer forum asked the insurance firm to cough up around Rs 25,000 in compensation in addition to paying the claim amount.
Insurance companies blamed the rising number of court orders going against them on their clients. “When people buy policies, they only look at the benefits though they know there are several limitations to them... and later when the claim gets rejected, they approach the courts,” Vijay Bhatt, area manager at Royal Sundaram, said.