Insurance co told to pay Rs 1.9L for cancelled flight

Time of India

29-07-2025

Ghaziabad: Over two years after city resident Sushil Kaul and his wife Sunita Kaul jointly filed an application, District Consumer Disputes Redressal Commission (DCDRC) has directed an insurance company offering international travel insurance to pay the entire airfare to them after Air Canada cancelled its flight in 2022.
DCDRC on Wednesday directed the insurance company — Care Health Insurance Limited — to pay Rs 1.9 lakh for the ticket price of $2337 calculated at Rs 82 per dollar within 45 days of the judgment, failing which the consumer would be entitled to recover the amount with an annual interest of 6% till the final payment is made.
On May 31, 2023, Kaul and Sunita Kaul jointly filed the application before the commission seeking direction to the insurance company that rejected their claim despite having a valid insurance policy to cover international travel.
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Now, DCDRC president Praveen Kumar Jain has directed Care Health Insurance Limited, Delhi, to pay back Rs 1.9 lakh for the flight ticket from Montreal to Ottawa. The commission also asked the insurer to pay a compensation of Rs 5,000 to the traveller for deficiency in service under the Consumer Protection Act.
Kaul informed the commission that he bought an insurance policy from M/s Care Health Insurance Limited after paying a premium of Rs 51,341 on June 10, 2022.
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The policy was valid for 178 days to cover his US and Canada trip.
Kaul said, "I booked two Air Canada tickets for July 18 for a flight from New Delhi to Montreal. The flight was scheduled to reach there at 6.20am (EST). I had the next flight for Ottawa from Montreal at 8.55am (EST). The flight left Delhi and reached Canada as per schedule, but on reaching there, I found an email from Air Canada informing about the cancellation of flight AC8001 meant for Ottawa.
The airline later adjusted us for a later flight.
"
When he placed a claim for compensating the cancellation of the flight, he was paid $200 (Rs 16,400) by the insurance company, whereas the cost of the ticket was $2337 (Rs 1,91,634), Kaul said.
Appearing before the commission, the insurance company said since the passenger was offered an alternate flight later in the day, the case was considered under the policy of flight rescheduling, accordingly, for a delay of 8 hours and 35 minutes.
Maintenance for the said period at a rate of $200 was paid to the insured passenger.
Having heard both sides, the commission concluded that the applicant placed on record the letter of flight cancellation issued by the airline. "The matter should not have been dealt with as a delayed or rescheduled flight as the flight AC8001 in which the traveller booked his ticket got cancelled and he has placed the letter of the airline as proof," the commission observed, declaring the insurer of committing deficiency in service.