UNITED INDIA INSURANCE CO. LTD. vs M/S. PAYARELAL NIRANJAN LAL

The Supreme Court upheld the National Consumer Disputes Redressal Commission's decision, affirming that no concluded contract of insurance existed due to the absence of a cover note and insufficient funds to honor the cheque dated 8.10.1986. The Court reiterated that the insurer's liability arises only upon acceptance of the proposal, which was not established in this case. The appeal to set aside the ex parte order was dismissed, maintaining the award of Rs.1,41,794.45 along with interest and costs to the respondent.