Chandigarh commission orders insurer to pay man for job loss due to rare disorder

The Chandigarh State Consumer Commission ordered an insurance company to pay Rs 18 lakh to a man who lost his job in Oman after developing Neurofibromatosis, a rare genetic disorder.

The man had purchased a five-year policy in March 2018 to protect his home loan in India if he became unable to work due to illness. The man returned to India in 2019 after his health deteriorated.

Doctors at the Postgraduate Institute of Medical Education and Research in Chandigarh confirmed his condition and advised surgery. When the man requested financial protection for his outstanding housing loan, the insurer rejected the claim. The company argued that the policy only covered seven specific major medical illnesses and that Neurofibromatosis was not on that list.

The commission ruled in favor of the man because the insurer could not prove that it had shared the specific policy restrictions with him before he paid his premium. The commission upheld a previous district order requiring the insurer to pay the Rs 18 lakh loan amount plus 6 per cent annual interest. The court also granted the man Rs 20,000 for litigation expenses and harassment.