LIFE INSURANCE CORPORATION OF INDIA vs MANI RAM

The Supreme Court upheld the decision of the lower forums, affirming that under Section 12 of the Consumer Protection Act, 1986, the Life Insurance Corporation of India was liable to pay the insurance claim of Rs. 2,50,000 to the complainant, as the premium was paid on August 21, 1995, and the next premium was due on August 21, 1996. The Court rejected the Insurance Company's argument that the policy had lapsed due to non-payment of premium, stating that the policy was valid at the time of the insured's death on August 2, 1996. The Court emphasized that the complainant, as the nominee, was entitled to the claim amount, thus confirming the lower courts' rulings.