UNITED INDIA INSURANCE APPEAL DISMISSED

The Supreme Court has dismissed the appeals of United Insurance Company which had refused to renew mediclaim policies in high claim cases of senior citizens.
The court stated that the company's denial was highly arbitrary. Though the insured were not entitled to automatic renewal, the public sector companies should have been fair. The claimants had been hospitalised repeatedly and the company declined to renew their insurance.
The court said: "Only because the insured had started suffering from a disease, the same would not mean that the said disease shall be excluded. If the insured had made some claim in each year, the insurance company should not refuse to renew insurance policies only for that reason."
The parties are not required to go into all the formalities. Since the policy contemplates terms for renewal, it cannot be placed at par with a case of first contract.