Insurance company has halted my policy even after receiving premiums

Insurance company has halted my policy even after receiving premiums and refusing to provide benefits. My wife has taken a medical insurance policy. She is a working lady and suffering from cardiovascular disease. The premium of policy has been auto renewed from her bank account. In the last premium there was some shortfall in the amount of money in her account.  Due to insufficient funds in her bank account the premium remained unpaid for five days. When she came to know that the premium was unpaid on the due date she manually paid the premium from her credit card.  The…

by Shivendra Pratap Singh | Apr 28, 2022 | Civil Matters

Insurance company has halted my policy even after receiving premiums. Insurance company has halted my policy even after receiving premiums and refusing to provide benefits. My wife has taken a medical insurance policy. She is a working lady and suffering from cardiovascular disease. The premium of policy has been auto renewed from her bank account. In the last premium there was some shortfall in the amount of money in her account. 

Due to insufficient funds in her bank account the premium remained unpaid for five days. When she came to know that the premium was unpaid on the due date she manually paid the premium from her credit card. 

The insurance company immediately sent payment receipt and a congratulation message on her email and mobile number also. Now she is facing medical complications and she approached the insurance company and she got information that her policy has been kept in halt. Sir, I want to take proper legal action against the insurance company.

The insurance company has accepted premiums with late fees. It shows that the insurance company has carried on the benefits of policy after imposing penalties in the payment of premiums. 

In this situation the insurance company cannot say that it has halted your policy. It is incumbent on the insurance company to provide benefits of medical policy. Instead, the company is making false statements so as to disentitled you to get benefits. 

You should file a complaint in the consumer forum. It is a deficiency in the service on the part of the insurance company. When the company has been accepting premiums it, later on, cannot say that policy is kept on hold. 

The contract between the insurance company and you is valid and enforceable because the company has received consideration. Not  providing medical insurance benefits to the policyholder constitutes act of fraud and deficiency in service. 

Author's Profile

Tags:

Shivendra Pratap Singh

Shivendra Pratap Singh

Advocate

Advocate Shivendra, practicing law since 2005, specializes in criminal and matrimonial cases, extensive litigatin experience before the High Court, Sessions court & Family Court. He established kanoonirai.com in 2014 to provide dependable and pragmatic legal support. Over the years, he has successfully assisted thousands of clients, making the platform a trusted resource for criminal and matrimonial dispute resolution in India.

Consult Online

Related Matters

Bank refused to obey the order of Lok Adalat

Mar 9, 2025 |

This legal guidance explains the remedies available when a bank fails to comply with a compromise order passed by the Lok Adalat despite receiving the settled amount. It discusses enforcement of the award, execution proceedings, contempt-related remedies, and the legal course available against arbitrary action of the bank.

Subsequent proceedings in arbitration matter

Feb 7, 2025 |

This legal guidance explains the legal consequences and subsequent proceedings arising after an arbitration award or order in an arbitration matter. It discusses enforcement of the award, challenge proceedings under Section 34 of the Arbitration and Conciliation Act, execution remedies, limitation periods, and the jurisdiction of courts in post-award disputes.

Civil court dismissed suit for want of jurisdiction

Jan 11, 2025 |

This legal guidance explains the remedies available when a civil court dismisses a suit on the ground of lack of jurisdiction. It discusses return of plaint under the Civil Procedure Code, refiling before the competent court, limitation protection, and the legal consequences arising from adjudication by a court lacking jurisdiction.

Admission in NRI quota can be changed afterwards

Dec 25, 2024 |

This legal guidance explains whether admission obtained under the NRI quota can subsequently be altered, cancelled, or converted to another category. It discusses eligibility conditions, consequences of misrepresentation, university regulations, refund issues, and the legal remedies available against arbitrary cancellation or change of admission status.

Claim related to motor accident in consumer forum

Dec 2, 2024 |

This article discusses whether a claim arising out of a motor accident can be pursued before a Consumer Forum in addition to or instead of proceedings before the Motor Accident Claims Tribunal (MACT). It examines the maintainability of such claims under consumer protection law, the liability of insurance companies, and the distinction between deficiency in service and statutory compensation under the Motor Vehicles Act.