KERALA STATE CONSUMER DISPUTES REDRESSAL COMMISSION VAZHUTHACADU THIRUVANANTHAPURAM APPEAL NO.510/03 JUDGMENT DATED.22.9.08 PRESENT JUSTICE SHRI.K.R.UDAYABHANU -- PRESIDENT SMT.VALSALA SARNGADHARAN -- MEMBER SRI.M.K.ABDULLA SONA -- MEMBER Life Insurance Corporation of India, (rep. by the Senior Divisional Manager, Divisional Office, Jeevan Prakash -- APPELLANT Pattom, Thiruvananthapuram 695004. (By Adv.S.Sreekumar) Vs. 1. P.Alavi, S/o Mammed, Thekumthottathil, Pulingottupuram, Amayoor P.O, Manjeri, Malappuram Dist., Pin 676123. -- RESPONDENTS 2. Rasheed Babu.P, LIC Agent, Code No.02642776, Alungaprambil House, Malappuram Dist. Pin,676123. JUDGMENT JUSTICE SHRI.K.R.UDAYABHANU,PRESIDENT The appellant is the first opposite party/LIC that has sought for setting aside the order of the Forum directing the LIC to pay a sum of Rs.20,000/- etc. the amount assured and also cost of Rs.2000/-. The short question that arises for consideration is whether the LIC is liable if the agent who collected the premium failed to deposit the same and also whether the LIC receiving the premium belatedly and renewing the policy without being aware of the fact that an accident has taken place is estopped from refusing to pay the assured amount. It is the admitted case that the premium was due on 28.1.2001. The accident took place on 22.3.01. The premium was paid belatedly on 23.3.01 and the policy, which had lapsed was renewed after receiving late fee. The Forum found that as the LIC has received the premium and renewed the policy after receiving late fee and hence the LIC is not empowered to repudiate the policy. We find that the findings are evidently erroneous as it upholds an unethical act of a renewal without disclosing the accident. Had the LIC been aware of the accident, evidently it would not have renewed the policy. The agent has no authority to receive the premium. That the unauthorized act of the agent will not be binding on the LIC is a settled preposition (Harshad J.Shah & Vs. LIC of India and others, A.I.R 1997 SC 2459). There is no evidence at all as to whether the complainant has entrusted the premium to the agent in time. In the circumstances, we find that the order of the Forum cannot be sustained. The order of the Forum is set aside. The appeal is allowed. JUSTICE SHRI.K.R.UDAYABHANU -- PRESIDENT SMT.VALSALA SARNGADHARAN -- MEMBER SRI.M.K.ABDULLA SONA -- MEMBER S/L | 
