Consumer Protection – Insurance Policy – Deficiency of Service – A home loan was secured by the appellants for which obtaining a life insurance was a pre-requisite – Life insurance in the name of husband of the complainant (the insured, now deceased) was obtained – As per the appellants, respondent No.1-bank acting as an agent for respondent no.2-Insurance Company, on 25.07.17 sanctioned the home loan – From the disbursed loan amount, insurance premium was paid on behalf of the insured by the bank to the insurance company – The insured was subjected to medical tests on 30.07.17 as a pre-condition for securing the home loan – Died of cardiac arrest on 08.08.17 – Death of the insured was intimated to the insurance company on 16.08.17 with a request to process the insurance claim, however the claim was repudiated – Consumer complaint dismissed by State Commission – Appeal dismissed by National Commission – Held: On 30.07.17, the insured was called for medical examination and the treadmill test, did not flag any health issue – In such backdrop, the communication (an ante-dated letter) of the insurance company for postponing the life insurance coverage by six months by adverting to the treadmill test report and that too at a stage after intimation about the death of the insured, appears to be a malafide act – Moreover, the insurance company declining the policy by unilaterally refunding the insurance premium, suggests that the respondent no.2 was deficient in rendering services to the appellant – Impugned judgment set aside – Complaint allowed – Consumer Protection.

Consumer Protection – Insurance policy – Presumption of acceptance of the policy by the insurer – Ratio of decision in Raja Vasireddy Komalavalli Kamba case as clarified in D. Srinivas case – Discussed.