Delhi Electric Supply Undertaking vs Basanti Devi And Anr on 28 September, 1999
It is
nowhere mentioned that if premium is not received policy will be
lapsed. I the case in hand premium was paid on 12.04.2003 and it
was accepted by LIC with interest therefore, it can not be said that
policy was in lapsed condition. It is also an admitted fact the life
assured died due to accident while was in service. We are relying on
the well-known authority Delhi Electric Supply Undertaking Vs.
Basanti Devi & Anr., 1999 (3) CPR 91 (SC). It is held by Apex Court,
agreement with employer and LIC premium payable by employer to be
deducted every month from salary of employee and to be transmitted
to the LIC - No communication from the LIC to the employee that
employer was not its agent - authority of employer to collect premium
on behalf of LIC - employee not knowing what was arrangement
between employer and LIC though it could be said that employer was
agent of LIC for employee. In the instant case, employer was to deduct
the premium and remit to the LIC. Life assured was in service.
Therefore, his salary was payable therefore employer is under
obligation to remit the premiums every month regularly and within
time. It is also an admitted fact that though premiums were paid at
6 F.A. No..: 509-08
late stage interest can be charged. In the instant case also premium
was received lately by LIC and interest was charged on the same.
Forum has rightly considered all these aspects and rightly allowed the
complaint. We are not inclined to interfere the judgment and order
passed by the Forum.