Timely premium payment is mandatory; customer denied claim even by the Supreme Court

The Supreme Court has ruled that the timely payment of insurance policy premiums is mandatory. If payment is not made before the risk commences, the insurance company cannot be held liable for compensating the loss.

If you hold any type of insurance policy, paying the premium on time is crucial. The Supreme Court recently delivered a significant verdict on this matter, clarifying that if the required premium is not paid before the insurance risk begins, the insurance company cannot be held responsible for the resulting loss.

Furthermore, the Court stated that under Section 64VB of the Insurance Act, 1938, an insurer cannot assume liability for a risk until the premium is paid or guaranteed in accordance with established rules. In other words, insurance coverage cannot be extended merely based on an official's assurance or an email.

What is the case about?