Archive · 15 Sep 2026
Consumer Commission Awards Woman Rs 3.50 Lakh Over Lapsed Policy
A woman bought an insurance policy and paid money toward it.
Later, payments that were supposed to continue were not handled properly.
Some money was taken from her bank account and then returned months later.
The insurance company said her policy had lapsed.
The woman said she had tried to pay and was not responsible for the problem.
The consumer commission agreed that the insurer had not clearly explained what happened.
It ordered the insurer to pay her Rs 3 lakh.
It also ordered Rs 30,000 for harassment and Rs 20,000 for legal costs, making Rs 3.50 lakh altogether.
The Una District Consumer Commission ordered an insurance company to pay a woman Rs 3.50 lakh.
The award includes Rs 3 lakh in policy installments, Rs 30,000 for mental harassment and Rs 20,000 in litigation costs.
The woman said premium payments were reversed or returned because of a payment-related problem, leading to the policy’s lapse.
The insurance company argued that she received the policy documents and could have used the 15-day free-look cancellation period.
The commission found no fault by the woman and said the insurer did not explain the policy lapse or the returned payments.
- Who
- An unnamed woman who held the policy and the unnamed insurance company involved in the dispute.
- What
- The Una District Consumer Commission ordered the insurer to pay Rs 3.50 lakh after finding that the policy lapse and returned payments were not properly explained.
- When
- The policy was issued on October 26, 2017; the disputed payments occurred in 2019 and 2020; the commission’s order was dated August 31, with the year not specified.
- Where
- The case was heard by the Una District Consumer Commission in Himachal Pradesh. The article headline identifies the woman as being from Kerala.
- Why
- The commission found that payments were returned or not automatically deducted, while the insurer did not provide a clear reason for declaring the policy lapsed.
Policyholder’s case
Insurance company’s defence
Responsibility for the policy lapse
Policyholder’s case
The woman said she attempted to pay the premiums, but payments were reversed or returned and the insurer later treated the policy as lapsed.
Insurance company’s defence
The insurer sought dismissal of the complaint, maintaining that the policyholder had received the application and policy documents and had not used the available cancellation option.
Payment handling
Policyholder’s case
She alleged that an employee requested replacement cheques and that Rs 5.87 lakh remained with the insurer for more than three months before being returned.
Insurance company’s defence
The insurer did not provide, according to the commission, an explanation for why the amount was returned or why the policy was declared lapsed.
Policy information
Policyholder’s case
The woman alleged that employees misrepresented the policy and gave incomplete information about its benefits and terms.
Insurance company’s defence
The company said the woman had been provided policy documents and a 15-day free-look period to cancel the policy.
- Total award
- Rs 3.50 lakh
- Policy installment awarded
- Rs 3 lakh
- Mental harassment compensation
- Rs 30,000
- Litigation expenses
- Rs 20,000
- Policy issue date
- October 26, 2017
- Returned payment cited
- Rs 5.87 lakh was returned to the woman’s account after more than three months
- Payment deadline
- The insurer was directed to pay within 30 days