LIFE INSURANCE CORPORATION OF INDIA vs RAJA VASIREDDY KOMALLAVALLI KAMBA & OTHERS

The Supreme Court held that a concluded contract of insurance requires clear acceptance of the proposal, as established in the principles of contract law. The Court found that silence does not imply consent in insurance agreements, and mere retention of premium or preparation of policy documents does not constitute acceptance. The High Court's conclusion that a binding contract existed was erroneous, leading to the direction for the refund of half the insurance amount of Rs. 85,000 to the Corporation.