Case Law Analysis
Consumer Protection Act, 1986 | Borrower Forced to Buy Insurance Through Bank Agent Is a Consumer; Risk Location Error Not Fatal If Mutual Understanding Exists : West Bengal SCDC
When a bank acts as an insurance agent and compulsorily enrolls a loan borrower in a policy, the borrower is a consumer under the Consumer Protection Act, 1986. The commission ruled that even if the risk location was incorrectly stated in the policy, the insurer cannot deny liability if both parties acted on a shared understanding of coverage - a critical win for small business owners caught in banking-driven insurance mandates.