Jayanagar Resident Among Thousands Facing Insurance Claim Rejections as Disputes Rise
Banking and insurance disputes have emerged as the leading cause of consumer grievances in Karnataka, according to data from the Karnataka State Consumer Disputes Redressal Commission (KSCDRC) for the 2025-26 period. The surge in unresolved claims has directly impacted local residents, including a 63-year-old resident of Jayanagar who was left to bear medical expenses after his insurer rejected his wife's surgery claim.
According to the KSCDRC, cases against banking institutions in the state increased from 35,954 in March 2025 to 37,897 in March 2026. During the same period, insurance-related complaints rose from 74,364 to 77,397, highlighting persistent issues regarding claim rejections and service deficiencies.
The Jayanagar resident shared that he and his wife had purchased health insurance to avoid financial dependence during medical emergencies. However, when his wife underwent surgery, the insurer rejected the claim by citing policy clauses that were never adequately explained to them.
Despite paying nearly Rs 2-3 lakh in premiums over the years, the resident had to cover the surgery expenses personally. He noted that even after securing a consumer court order in his favour, he has still not received the money.
Other residents in Bengaluru faced similar hurdles. A 53-year-old resident of Mysuru Road recounted that an insurance company denied his claim after he underwent surgery for a fracture, stating that minor fractures were not covered.
Across the state, Belagavi topped banking-related cases with 13,240 filed and 12,601 disposed of, followed by Mysuru with 2,009 cases filed and Dharwad with 1,361 cases. For insurance disputes, Haveri led with 5,330 cases filed, followed by Dharwad with 3,567 cases and Gadag with 2,728 cases.
Consumer rights activists have pointed to poor communication during policy sales as a primary driver of these disputes. YG Muralidharan, a founding member of the Consumer Rights Education and Awareness Trust (CREAT), stated that consumers are often not informed about exclusions and cancellation clauses until a dispute arises.
KSCDRC Chairman Shivashankare Gowda added that claim rejections and delays frequently occur on technical grounds, urging consumers to fully understand their policy conditions.
