D. SRINIVAS vs SBI LIFE INSURANCE CO. LTD

The Supreme Court held that the insurer's refusal to settle the claim based on the non-completion of medical examination was unjustified, as the proposal for the insurance policy was accepted by the bank and the premium was paid. The Court emphasized that the insurer had a duty to inform the insured about the need for a medical examination and the status of the policy. Consequently, the Court set aside the National Commission's order and directed the insurer to pay the outstanding loan amount under the insurance policy, establishing the principle that insurers must communicate effectively with policyholders regarding policy status and requirements.