New Delhi, July 23 -- An insurance company cannot reject a policyholder's claim solely because of a tax-related irregularity that has no connection with the insured loss, the District Consumer Disputes Redressal Commission (DCDRC) in Rajasthan's Sirohi has reportedly ruled. The decision reinforces the principle that an insurer must establish a clear link between the reason for repudiating a claim and the terms of the insurance policy or the loss suffered by the insured.

According to reports by Outlook Money, which cited local publications Amar Ujala and Sangri Today, the commission ruled against New India Assurance after the insurer rejected a claim citing a tax-related discrepancy that was unrelated to the insured event.

Insurance comp...