Mere Deduction Of Premium Does Not Create Binding Insurance Contract, Uttarakhand State Commission Dismisses Appeal Against New India Assurance Co.

The State Consumer Disputes Redressal Commission, Uttarakhand, ruled against a complaint filed against New India Assurance Co. and SBI, stating automatic premium deduction by the bank didn't form a binding insurance contract. The complaint stemmed from a loss suffered by M/s Uttaranchal Haat due to heavy rain. \r

Despite premium deductions, the insurance policy wasn't renewed for the subsequent year, leading to denial of coverage. Citing legal precedents, the Commission emphasized the need for an issued policy for a valid contract. \r

It concluded there was no privity of contract between the complainant and the insurer, dismissing the appeal and upholding the lower court's decision.