Chandigarh, Aug. 8 -- Holding that an insurer cannot deny a medical claim merely by attributing a disease to alcohol consumption without credible medical evidence, the district consumer disputes redressal commission-I, Chandigarh, directed Star Health and Allied Insurance Company Ltd. to reimburse Rs.6 lakh to the family of a deceased policyholder after finding the claim repudiation to be arbitrary and unjustified.

The commission, comprising president Pawanjit Singh and member Suresh Kumar Sardana, held that the insurer failed to establish that the policyholder's liver cirrhosis was caused solely by alcohol consumption so as to attract the exclusion clause in the health insurance policy.

According to the complaint, the policyholder, Cha...