Insurance Act, Section 64 VB – States, that no risk could be assumed unless premium is received in advance – While no policy of insurance could be concluded without payment of premium, a converse does not necessarily operate – Receipt of premium cannot be taken as concluding the contract –  In this case, what has happened is that the premium has been collected but there was no act signifying consent to any proposal – Insurance company not liable – No proposal had been forthcoming and the amount had been only credited in the Suspense Account and since the policy of insurance had not been under-written, there was no liability for the Insurance Company. LIC of India v. Raja Vasireddy AIR 1984 SC 1014, relied. 

LIC v. Permanent Lok Adalat, Hisar, 2015 PLRonline 0202

Life Insurance Corporation Act, 1956, Section 43 - Grace period – Revival - Payment of premium was  made within the grace period -   Condition 3 relates to revival of  discontinued policy -   A bare reading of the condition shows that  it can be revived during the life time of the assured -   In the  instant case the cheque was admittedly received after the death  of the assured – Company not liable. 

Life Insurance Corporation of India v. Jaya Chandel , 2008 PLRonline 0105 

Life Insurance Corporation of India v. Jaya Chandel , 2008 PLRonline 0105 

Insurance – Premium deposited – Proposal not accepted  -  Amount towards premium was deposited by the deceased with the Life Insurance Corporation in regard to the proposal submitted for Insurance on his life – Died  after 26 days -  Mere offering the amount which is retained by the respondent-Corporation as a premium does not amount to acceptance of the policy - No life insurance policy was issued in the name of the deceased -  The argument of the learned counsel for the appellants that no response was given to the communication addressed to the respondent-Corporation in regard to the policy and therefore, it is deemed to have been accepted, is not a valid argument because there is nothing on the record to show even prima facie the acceptance of the proposal to the offerer (deceased) - Contract is complete when the proposal is made and accepted -  Therefore, it was rightly held by the first appellate Court that there is no contract between the parties - Mere lapse of time in communicating the acceptance cannot be made a ground for holding that the proposal stood accepted -  The Corporation before entering into contract is required to enquire into information supplied and that naturally takes some time -  It is not shown that any time frame was fixed between the parties for accepting the proposal and on the lapse of it, the proposal was deemed to have been accepted. 

Saroj Chandna v. Life Insurance Corporation, 1999 PLRonline 0002