Consumer Commission Holds Insurance Company Liable For Denying Claim For Non-Issuance Of Policy After Accepting Premium

Consumer Commission Holds Insurance Company Liable for Denying Claim Due to Non-Issuance of Policy After Accepting Premium A Consumer Commission has held an insurance company liable for wrongly denying a claim on the grounds of non-issuance of a policy, despite having accepted the premium from the consumer. The commission ruled that once a premium is accepted, the insurance company assumes the risk and is obligated to issue the policy and honor claims. This decision reinforces consumer protection principles, emphasizing that insurers cannot escape their liabilities due to administrative oversights after receiving payment.