Hearing to the Gokal Chand case where the insured person took a home loan from Axis Bank with a pre-requisite insurance policy died and the insurer refused to provide the benefits of policy secured by the appellant on the basis of ‘Treadmill Test Finding’.
The State Commission dismissed the Consumer Complaint with the observation that there was no privity of contract between the insurer and the insured. This was further dismissed by the Supreme Court by defining it as a case of deficiency of service and non-bonafide conduct by the insurance company.
The contrary finding in the impugned order did not pass judicial scrutiny. To this, the Supreme Court concluded that the impugned judgment was unsustainable and was set aside. The appeal was further allowed.