Insurance Company Wrongly Claims I Declared Incorrect NCB, Cancels My Claim & Removes Zero Dep Cover

[User_1b72c763]

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User_1b72c763
PARTICIPANT
February 3, 2025 at 12:31 pm

I recently had my insurance claim rejected because my insurer says I “incorrectly declared” my No Claim Bonus (NCB). They also removed my zero depreciation cover, stating that due to this alleged misdeclaration, I’m no longer eligible for it.

The problem? I never entered any incorrect NCB. I just answered their questions honestly during the policy purchase. My previous insurer had given me 0% NCB, but this new insurer applied 50% NCB, which I never requested or entered. Now, they claim it was my fault and are asking me to pay the difference.

I asked them to provide proof that I manually declared 50% NCB, but so far, they haven’t given anything concrete. I also checked my previous policy, which clearly shows I had 0% NCB, proving I never had a basis for 50%.

I’ve escalated the issue, but they keep insisting I “declared” it, which is false. I’m planning to take this up with the Insurance Ombudsman or IRDAI if they don’t resolve it fairly.

Has anyone else faced a similar issue? Any advice on how to push back effectively?

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[Cleverowl5706]

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Cleverowl5706
PARTICIPANT
February 3, 2025 at 12:49 pm

This is a new tactic deployed by insurance companies nowadays. When you escalate the matter further. Their defence will be that the insurance contracts are based on utmost good faith and when it came to the customer’s attention that he/she/they/it was wrongly provided any cover, they should have immediately brought that to the attention of the company.

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[User_1b72c763]

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User_1b72c763
OP
February 3, 2025 at 12:53 pm

What can we do now?

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[Cleverowl5706]

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Cleverowl5706
PARTICIPANT
February 3, 2025 at 2:08 pm

You need to first raise a complaint with your insurance provider. Then you can raise it with IRDAI dispute resolution mechanism.

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[User_26711aa5]

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User_26711aa5
PARTICIPANT
April 27, 2025 at 2:50 pm

L & T General Insurance Co. Ltd. vs Shadi Lal Kapoor

https://indiankanoon.org/docfragment/103852764/?formInput=indian%20motor%20tariff
Please go through these 2 legal precedents.

I am also going through something similar

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