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"Where premium for LIC policy was to be remitted from salary and failure in remittance was for no fault of insured and employer was liable for that fault, employer being agent of LIC, Corporation was liable to pay policy amount."

(ii) Hon'ble National Commission reported in 2015 (1) CPR 263 (NC) in a case LIC of India Vs. Smt.Ram Sakhi, it was held that:

"it is the bounded duty of the Opposite Parties to inform the same to employee and his employer, by way of issuing a notice in accordance with Sec.50 of the Insurance Act, 1938 and same position has been enunciated in the manual for policy servicing department No.14 Salary Saving Scheme issued by LIC of India on 31.12.1990".

19. At this juncture, it would be appropriate to understand Salary Saving Scheme of LIC. It is a simple economical plan whereby employees obtain Life Insurance protection for their families and retirement income for themselves under advantageous conditions which might not be available to them otherwise. Having issued the policy under the Salary Saving Scheme, the Respondents/Opposite Parties cannot escape their liability to pay the sum assured on the ground of non-receipt of monthly premiums. This view is further fortified by the judgment reported in "DESU Vs. Basanthi Devi" reported in III (1999) CPJ 15 SC- the Hon'ble Supreme Court while considering the relationship of employee and the Insurance Company in the matter of Insurance Policy issued under Salary Saving Scheme, held that: "the employer is an agent of the Insurance Company in terms of Section- 230 of the Indian Contract Act and any lapse on the part of the employer while acting as the agent of the Insurance Company was made basis to fasten the liability on the Insurance Company."