Consumer protection: Changes in insurance policy terms must be conveyed

The National Commission noted that critical illness risk should have been included by the insurer to avoid prejudice caused by the discontinuation of this risk

Mustafa Pithawala had taken a home loan of Rs 20,11,101 from Tata Capital Housing Finance on October 19, 2015. To secure its repayment, he was covered under ICICI Lombard Group Secure Mind Policy, valid from October 23, 2015, to October 22, 2020. This policy also covered personal accident and major medical illnesses and procedures such as coronary artery bypass graft surgery (CABG).

 

During the tenure of the loan and the policy, a representative of Cholamandalam Investment and Finance Company approached Pithawala with an offer to transfer his existing loan for a higher amount of Rs 1,02,10,000 and repayment coverage under