SC direction to honour insurance contract which met prescribed conditions

Gokal Chand (D) Thr. Lrs. Vs Axis Bank Ltd. (Supreme Court of India) Whether an insurance company even after receiving the insurance premium, can refuse to honour its contract when the insured person dies immediately after taking the home loan. An interesting issue arose in this case when the insured obtained a home loan from Axis Bank and as part of the loan mandatory insurance was taken from Max NewYork Life and a premium of Rs 6.24 lacs was also debited.After such debit, tread mill test (TMT) test was conducted in which there was no abnormality and there was no adverse communication from ei...