1995 (2) TMI 450

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....s. 1 lakh from the respondent, Life Insurance Corporation of India (hereinafter 'the Corporation'). The Policy was obtained on 1.4.1989 and two yearly premiums had been paid by 1.4.1991. As the third annual premium could not be paid within the grace period of a month thereafter, the Policy lapsed on 1.5.1991. It however so happened that the Policy holder was assassinated on 30.5.1991 at Ch....

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....talments are paid. The Corporation, however, relaxed this condition vide its circular dated 16.10.1987, according to which if the death of the assured were to occur after two premiums have been paid within three months of the due date of the next unpaid premium, "the full Sum Assured together with the declared bonuses" would be paid. Shri Rao, appearing for the respondent Corporation, contends tha....

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.... reasonably possible, we would accept the one which favours the Policy holder, as the same advances the purpose for which a Policy is taken and would be in consonance with the object to be achieved for getting lives assured. Had this been the only material before us, we would have ordered the respondent to pay a further sum of Rs. 1 lakh, but then Shri Rao brings to our notice a subsequent circula....