“In this case, it is clear that as per Cash Credit Agreement, the primary responsibility of getting the insurance done was of the complainant company. The bank could, but was not bound, to take out the same on behalf of the borrower. This was the express term of contract. The complainant company has shown no evidence that during the period of expiration of the insurance policy till the date of occurrence, the complainant company took any step to get the stock insured. It is seen that the first letter written to the bank is also endorsed to National Insurance Company, so the complainant company was aware of the insurance policy and its details. Just because the bank had been taking the insurance in the past did not absolve the complainant of the primary responsibility to ensure insurance of the goods.”
Link to the judgement here