Insurance policy is governed by contract – If there is breach of non-payment of premium

Judgment dated 12.4.2023 of the High Court of Orissa (DB) 

Insurance – Employer of the appellant had policy for Rs.10,000 at the monthly premium of Rs.27.71 – On suspension of the Appellant – the premium was stopped after the last payment in 1998 – In 2011, he was acquitted – After 16 years of maturity of LIC Policy, it was presented for payment – LIC paid Rs.18,039/ – Appellant filed consumer complaint on the ground that entire maturity amount was not paid – HELD that the policy is governed by contract of insurance and if there is breach for non-payment of premium by the employer, LIC is not liable to pay the entire maturity amount. 

W.A.No.1585 of 2022 – Hadubandhu Nayak Vs. The Manager, LIC of India, Bhubaneswar and others