Case Law Analysis
Section 13 SARFAESI Act assignment of insurance policy bars insurer liability for service deficiency | Policy surrender dispute : NCDRC
When a bank lawfully assigns a life-insurance policy to secure a loan under the SARFAESI Act, the insurer cannot be held liable for alleged deficiencies in surrender processing. The NCDRC ordered the bank to release the surrender proceeds with interest, clarifying that insurer obligations end upon valid assignment and protecting lenders and consumers in similar arrangements.