📷 Image: Wikimedia Commons / Biswarup Ganguly
Business
Insurance Firm Refuses Home Loan Claim, Demands Rs 18 Lakh from Jobless Patient
✍️ Amar Ujala · Mohali
🗓 10 Nov 2026, 11:01 AM
👁 14
A rare illness cost a man his overseas job, and his home‑loan insurance claim was rejected, leaving him liable for a Rs 18 lakh payout.
A resident who was working abroad contracted a rare disease that forced him to return to India, resulting in the loss of his overseas employment. He had taken a home‑loan insurance policy that promised coverage in case of unforeseen hardships.
When he filed a claim to cover the loan repayments, the insurer denied the request, citing specific policy clauses that exclude coverage for conditions like the one he suffered. The denial obliges the borrower to pay the outstanding amount of Rs 18 lakh himself.
The insurer stated that the policy terms were clear and that the company could not make an exception. The claimant, now without a job and facing a substantial financial burden, is exploring legal recourse to challenge the decision.
Consumer rights groups have highlighted the case as an example of the challenges faced by policyholders when rare illnesses intersect with strict insurance terms, urging regulators to review such exclusions.
The incident was reported from Mohali, Punjab, where the affected individual sought assistance from local consumer forums.
When he filed a claim to cover the loan repayments, the insurer denied the request, citing specific policy clauses that exclude coverage for conditions like the one he suffered. The denial obliges the borrower to pay the outstanding amount of Rs 18 lakh himself.
The insurer stated that the policy terms were clear and that the company could not make an exception. The claimant, now without a job and facing a substantial financial burden, is exploring legal recourse to challenge the decision.
Consumer rights groups have highlighted the case as an example of the challenges faced by policyholders when rare illnesses intersect with strict insurance terms, urging regulators to review such exclusions.
The incident was reported from Mohali, Punjab, where the affected individual sought assistance from local consumer forums.