HARSHAD J. SHAH vs L.I.C. OF INDIA .

The Supreme Court ruled that payment of premium to a general agent of the Life Insurance Corporation of India (LIC) does not constitute valid payment to the insurer under the relevant insurance policies. The Court held that the policies lapsed due to non-payment of the premium within the grace period, and thus the claim made by the insured's widow was rightly repudiated by the LIC. The judgment emphasized that agents are not authorized to collect premiums on behalf of the insurer, thereby affirming the necessity of direct payment to the insurer for policy validity under the Insurance Act.