Consumer Issues
'Penalise insurance companies for harassing customers'

While ordering Apollo Munich Health Insurance to pay over Rs1.8 lakh to a policy holder for not reimbursing his treatment expenses, a Consumer Forum has asked the Finance Ministry to deal strictly with insurance companies that harass customers 

 
New Delhi: The Union finance ministry has been asked by a Delhi consumer forum to deal strictly with the private insurance firms and consider cancelling their licences for harassing customers and illegally rejecting their claims, reports PTI.
 
The East District Consumer Disputes Redressal Forum made this recommendation while ordering Apollo Munich Health Insurance Co Ltd to pay over Rs1.8 lakh to a policy holder for not reimbursing his treatment expenses and illegally cancelling his insurance cover after he submitted his claim.
 
"Private insurance firms are resorting to such acts just to save the amount which they are legally bound to reimburse to policy holders. This needs to be dealt with by appropriate authorities and license of such companies may be considered to be cancelled," said the forum's bench presided by NA Zaidi.
 
"Let copy of this order be forwarded to Secretary (Finance), Ministry of Finance, Govt. of India for perusal and strict action," it added.
 
The forum gave this order holding that the insurance firm "harassed and traumatised" the insured by their "unlawful action" and "illegal methods" to deny his rightful claim under the policy.
 
"Complainant (policy holder) of this case has been harassed, traumatised by the opposite party (Apollo Munich) by their unlawful action and illegal methods to deny rightful claim under the policy," the bench said, directing the insurance firm to reimburse the medical expenses of over Rs1.4 lakh incurred by policy holder. It also asked to pay him Rs40,000 as compensation.
 
The forum also comprising member T Vijayan observed that the policy holder had already been admitted for treatment prior to cancellation of his policy and refund of the premium and as he had already submitted his claim such termination "shall be deemed to be a device to deny his rightful claim." 
 
The order of the forum came on the plea of Delhi resident Ashok Kumar, who had bought a Health Shield insurance policy from Apollo Munich valid from 25 November 2010 to 24 November 2011 for Rs2 lakh.
 
Kumar had alleged that Apollo Munich had rejected his claim for medical expenses and cancelled his insurance policy after he submitted his claim for reimbursement.
 
The insurance firm in its defence had contended that Kumar's policy was terminated and his premium refunded as he had concealed that he was a diabetes patient.
 
The forum, however, rejected the contention saying the insurance firm renewed Kumar's policy not once but twice and "it was their duty to have him medically examined before renewal of the policy".
 

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COMMENTS

Vaibhav Dhoka

4 years ago

As most of the sectors such as Mutual fund,Insurance ,banking etc have been opened for invetment for private playes such incidences have increased many folds.Therefore all should think twice before opening other sectors in FDI.They ARE and WILL be only here for GAIN and no other intention by HOOK or CROOK method.As seen from above order.

Vaibhav Dhoka

4 years ago

As most of the sectors such as Mutual fund,Insurance ,banking etc have been opened for invetment for private playes such incidences have increased many folds.Therefore all should think twice before opening other sectors in FDI.They ARE and WILL be only here for GAIN and no other intention by HOOK or CROOK method.As seen from above order.

nagesh kini

4 years ago

The Forum's direction to the Ministry needs to be followed up vigorously.
In Medi-claim issues all the insurers are laws unto themselves and take undue pleasure in delaying and rejecting valid claims, including incentivizing their hand-maidens the TPA (who anyway ought to be done away with forthwith) to dodge claims.
I once represented at Insurance Ombudsman a very senior citizen whose claim for a trifling Rs.70,000 on the account of his dead spouse was rejected on very frivilous grounds. The insurance co and the TPA didn't put in appearance at the final hearing resulting in ex-parte ordering full claim.
Many prefer not to pursue injustice simply because the insurers only harass further - hike premium and/or delist the ailment on renewal or simply refuse to renew.
The TPA system to say the least is obnoxious and over time has proved to be a tool for harassment of hapless insureds.
It is time the IRDA implements the list of very valid suggestions submitted to its Chairman by MoneyLife. The Ministry of Finance need to ensure this.

ROY SYDNEY

4 years ago

I have also approached Pune additional consumer forum against Cholamandalam Ins co who have rejected claim saying that pre existing condition.Unfair trade practice and deficiency in service are my complaints.

GMR project signed under dubious conditions: Maldives President

According to Maldives President, the demand to reclaim the GMR's $500 million airport project is stemming from the fact that the agreement was not a responsible business agreement where both parties benefit

 
Male: Terming the controversial GMR airport project in Maldives as a 'bad contract', President Mohammed Waheed on Thursday said it was signed 'conceivably under dubious conditions' by his predecessor Mohammed Nasheed, reports PTI.
 
He also reacted strongly to India's concerns about developments in his country saying, "there is no reason to be concerned, since the country is fully functional and operational".
 
In an interview to PTI, the President said, "what is irresponsible is for Mr Nasheed to sign a contract against the wishes of the parliament. The demand to reclaim the airport is stemming from the fact that the agreement was not a responsible business agreement where both parties benefit.
 
"This agreement was signed during the previous government conceivably under dubious conditions. So it's not an issue with GMR, it's an issue of a bad contract." 
 
He was responding to a question whether the demands of his coalition parties to reclaim the project were irresponsible as alleged by his predecessor Nasheed.
 
Hassan also said that under the current agreement Government has to pay $1.5 million to GMR each month which is "not affordable to the Government of Maldives".
 
In 2010, Indian infrastructure major GMR had entered into a concession agreement with Maldivian government under the then President Nasheed to upgrade and manage Ibrahim Nasir International Airport (INIA) for a 25-year period.
 
The $500 million project ran into rough weather following country-wide protests by coalition of opposition political parties which had came to power after the controversial ouster of democratically elected Nasheed's government in February this year.
 
The parties want to reclaim the airport from GMR alleging that it was an "illegal" agreement signed by Nasheed which did not have the consent of the Parliament.
 
The criticism of the airport project created a diplomatic row last week when President's spokesperson Abbas Adil Raza, in a protest rally here, alleged that Indian High Commissioner D M Mulay was acting hand-in-gloves with GMR and demanded that he should go, once GMR is made to leave.
 
Downplaying the controversy, the President said, "The new constitution gives right to all citizens the right to express ones free will not fore bearing the office one holds. Sadly, Mr Abbas's statements reflect only his personal opinions; he said it in his personal capacity. The government has expressed its regrets even though they are his personal remarks".
 
Concerned over the political instability in Maldives, India had issued a press statement last month asking it to ensure a "propitious" climate for foreign investments.
 
"Maldives will welcome any investment from India, we want more business with India, especially more Indian shares of our main tourist market," the President said.
 
He also blamed supporters of Nasheed for spreading false allegations about the rise of radical Islam in the island country which is dependant on tourism.
 
"Maldives is one of the most diverse and socially moderate countries in the world. Yes, we are a 100 per cent Islamic country, and that's what we have been for centuries.
 
Maldivians are moderate Muslims not extremist," he said.
 
President Hassan succeeded Nasheed in February, 2012 through a controversial transfer of power.
 
Asserting that he had facilitated a calm and conducive environment for the Majlis (Maldivian Parliament) to function, President Hassan said the election would take place as scheduled in November 2013.
 

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COMMENTS

Hassan

4 years ago

Does this guy know , that a multi million dollar project for the border control system of the Maldives between Immigration and Malysia's Nexbis Company ,has been also signed when it was highly criticized and even being asked to halt the project by Anti Corruption Commission....

REPLY

Hassan

In Reply to Hassan 4 years ago

The only thing is this was done when Dr.Waheed's brother-in-law was the immigration controller...Too bad you told the media that ACC cannot stop that project..Why? Is it becuase your empty pockets get filled with cash from Nexbizzz

“India’s growth recovery to remain shallow”

India’s macro-economic data, just released, suggests that the economy is facing severe supply-side constraints, which is leading to the odd combination of weak domestic output, high and sticky inflation and a widening trade deficit, says Nomura

 
Economic data, released on Monday, show negative industrial output growth, high and sticky inflation and a record-high trade deficit, led by improving non-oil imports. The latter is not consistent with a slowing economy, says Nomura research in its Asia Insights. The brokerage believes that industrial output data may be exaggerating the growth slowdown, but power outages have also constrained production. Meanwhile, the higher trade deficit reflects weak exports, a seasonal rise in gold demand and also a genuine improvement in imports due to import substitution. Overall, the data suggest that the economy is facing severe supply-side constraints, making it imperative to ease bottlenecks. Until then, Nomura expects India’s growth recovery to remain shallow as the economy will be quick to hit a ceiling. Moreover, India’s external situation remains very worrying. Nomura sees upside risks to India’s current account deficit forecast (of 3.8% of GDP in FY13) with current trends suggesting that that the deficit could be as high as in FY12 (4.2% of GDP).
 
All in all, data suggests that the economy is facing severe supply-side constraints, which is leading to the odd combination of weak domestic output, high and sticky inflation and a widening trade deficit. This makes it all the more crucial to hasten the process of land/environmental clearance and speed up the setting up of the National Investment Board, says Nomura but is there enough of political will for it?
 
Nomura has highlighted that India’s current account deficit (CAD) should rise to around 4.9% of GDP in Q3 CY 2012. However, the October trade deficit data suggests no turnaround is yet in sight. With a worsening trade deficit and high and sticky inflation, the monetary policy cannot be eased very aggressively. Nomura continues to expect a 50 basis point (bp) repo rate cut in H1 2013, with policy rates likely to stay on hold after that.
 
India’s macro-economic data paints a puzzling picture. Industrial production (IP) growth contracted 0.4% y-o-y (year-on-year) in September (2.3% in August). However, CPI inflation remained sticky at 9.75% y-o-y in October (9.73% in September) and the trade deficit widened to an all-time high of  $21 billion in October from $18.1 billion in September due to weak exports (-1.6% y-o-y in October versus -10.8% in September) and stronger imports (7.4% versus 5.1%). The latter is not consistent with an economy that is slowing sharply. To understand this disconnect, Nomura makes the following five points:
 
Power outages disrupt output: The negative surprise in IP data largely owes to contraction in capital goods (-12.2% y-o-y in October versus -3.4% in September) and consumer durables output growth (-1.7% versus 0.6%). While firms usually build inventory pre-festival seasons in October/November, Nomura believes that power outages may have constrained production this year, resulting in firms drawing down on inventory to meet demand. In addition, consumer non-durables output growth moderated sharply (1.1% versus 5.8%) reflecting lower summer crop production.
 
Growth is bottoming out, not falling: Growth in the intermediate goods output, a precursor to final demand, remains positive and, on a three-month moving average (3mma) basis, IP growth rose 0.5% y-o-y in September from a trough of -0.7% in May. Excise tax collections are accelerating, up 17.5% y-o-y (3mma) in September from 0.3% in April. Import growth, excluding oil and gold, is also trending higher. Therefore, Nomura believes that the IP data may be overestimating the growth slowdown. More likely, Nomura believes that the industrial cycle is bottoming-out. Unlike the past, Nomura expects a longer period of consolidation in this cycle due to weak exports, lacklustre investments and moderating consumption demand.
 
Reasons behind higher trade deficit: While weak exports are partly responsible, higher oil prices are not. Nomura estimates that the oil trade deficit (exports minus imports) has widened only marginally to $9.9 billion in October from $9.5 billion in September, while the non-oil trade deficit has worsened to $11.1 billion from $8.6 billion. This is partly due to the pre-festival seasonal rise in gold imports—the trade deficit worsened by an average of $3.8 billion between September and October during the last three years. However, the trend in imports ex-gold is also clearly higher.
 
Reasons behind sticky CPI inflation: Food inflation has moderated marginally to 11.45% y-o-y in October from 11.75% in September. But within this aggregate, cereals and pulses prices are rising sharply, while fruit and vegetable prices have moderated. The government’s wheat procurement program has created an artificial scarcity in markets pushing up prices, while pulses prices have risen due to lower output. Meanwhile, core CPI (ex-food and fuel) has remained unchanged in the 8.3-8.4% y-o-y range for three months now.
 
Import substitution: The phenomenon of rising imports and lower domestic output can also be explained by increasing import substitution as a result of supply-side constraints (including in power) and elevated inflation (high domestic cost of production). Electrical machinery, rubber products and consumer durables are a few sectoral examples. 
 

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