LIFE INSURANCE CORPORATION OF INDIA vs DRAVYA FINANCE PVT. LTD. .

The Supreme Court examined the validity of a circular issued by the Life Insurance Corporation of India that imposed a registration charge of Rs.250 per assignment of life insurance policies. The Court analyzed whether such a charge was permissible under Section 38 of the Insurance Act, 1938, which governs the transfer and assignment of insurance policies. The Court held that the circular's imposition of a fee was not supported by the statutory provisions and was therefore invalid. The judgment clarified the scope of the insurer's obligations and the limits of charges that can be levied for policy assignments.