Bank's Role As Intermediary Does Not Create Privity Of Contract With Insured: NCDRC Holds Insurance Company Liable

The NCDRC ruled that a bank, acting as an intermediary, does not create privity of contract between the insured and the insurer. The case involved an insurance claim where the bank facilitated the transaction but was not a party to the contract. The NCDRC held that the bank's role was merely as an intermediary and did not extend to creating legal obligations or privity with the insurance company. This decision clarifies the legal standing of banks in insurance contracts and reinforces that the insurer remains liable for claims, regardless of the bank’s involvement in the transaction.