Home | Legal Advice | Civil Law Cases | Insurance company has halted my policy even after receiving premiums

Insurance company has halted my policy even after receiving premiums

Shivendra Pratap Singh


28/04/2022/ 3:33:36 PM

Reading Time:

Question: 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.  

Asked from: Tamil Nadu

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. 

shivendra pratap singh advocate

Shivendra Pratap Singh


Practising lawyer in the High Court Lucknow. You can consult on Criminal, Civil, Matrimonial, Writ, Service matters, Property, Revenue and RERA related issues.

Cancellation of Sale Agreement

Question: Cancellation of sale agreement without consent of party. I executed an agreement of sale for a 497 sq.yards site with a condition that I will get clearance from ULC. I took advance of 2 lakhs cheque and 2 lakhs cash, totalling to 4 lakhs. It's been 22 months...

Landlord does not provide a rent receipt

Question: After making rent payment, the landlord does not provide a rent receipt. Also not picking up calls & responding to messages. What action can be taken against him? Asked from: Maharashtra You should send to him a legal notice on his residential or postal...

Forfeiture of earnest money in withdrawal of tender

Question: I am a contractor and have some tenders in BHEL. The Bhel has forfeited earnest money because I have withdrawn a tender. So I want to know whether forfeiture of earnest money in withdrawal of tender is legal in India. BHEL has published tenders for the...

Arbitration in respect of non-arbitrable issues

Question: Some tenders were issued during last financial year. Tenders were in respect of fencing and drainage on both sides of the road. The department has allotted those tenders to my company. Company has to conduct a survey of land and demarcate slope angle for the...

Mud road on my land :  How to get it back?

Question: Government has laid a mud road on my land a few years ago. I have all documents stating the land where the road is laid belongs to me. We do not know about this. How to get my land back? I have all documents stating the land where the road is laid belongs to...

Can mother execute a registered will

Question: Can mother execute a registered will towards the property which she had received from my deceased father? My father died in the year 2021 and he has named my mother as the 100% owner of the existing house in the registered will. I have 4 older brothers and 1...

Appointment of arbitrator under the agreement

Question: My firm is doing business of gravel supply to the government. I want to know whether the appointment of an arbitrator under the agreement is possible? Our firm got a tender from the public works department of Uttar Pradesh. According to the tender agreement...

Kanoonirai has been advising in legal issues since October 2014. You can consult a lawyer through online media, telephonic consultation and video conferencing.