D. Srinivas vs Sbi Life Insurance Co. Ltd

The Supreme Court held that the insurer's refusal to honor the life insurance claim based on the non-completion of medical examination was unjustified, as the insurer had accepted the premium and failed to inform the insured about the need for medical examination. The Court emphasized that the acceptance of the premium created a presumption of acceptance of the insurance proposal under the Insurance Act, 1938. The Court reversed the National Commission's decision, thereby upholding the State Commission's order to settle the insurance claim and discharge the loan amount.