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Supreme Court uphold's LICs plea of 'financial hardship'

The Supreme Court had in its judgment rendered in March, last year, directed the Life Insurance Corporation of India to absorb the some temporary workmen in the permanent posts. It was further held that the Corporation would be liable to pay all consequential benefits including monetary benefits taking into consideration the revised pay scale in the cases of those workmen who had attained the age of superannuation. On a Review plea by LIC, which contended that implementing the order would increase in its financial burden and that the same will be contrary to the interests of the policyholders, the Supreme Court has modified the Judgment only with regard to payment of back wages and held that only 50% of the back wages with consequential benefits will be payable. The Court observed: “While ordinarily, the aspect of financial hardship would not be a sufficient ground to warrant our interference in the instant case, but keeping in view the fact that LIC is a statutory Corporation operatin...

Insurance policies issued prior to 2015 amendment are freely tradable and assignable

IN THE SUPREME COURT OF INDIA Civil Appeal No. 8542 of 2009 Decided On: 29.12.2015 Appellants: LIC of India Vs. Respondent: Insure Policy Plus Services Pvt. Ltd. and Ors. Hon'ble Judges/Coram: Vikramajit Sen and Shiva Kirti Singh, JJ. Case Note: Insurance - Assignment of lapse insurance policy - Section 38 Insurance Act, 1938; The Insurance Laws (Amendment) Act, 2015 - First Respondent dealt in assignment of life insurance policies - Also traded lapsed policies - Insurance policies required registration in Appellant's books - Registration of lapsed policies was declined by Appellant - Relied on two Circulars issued by it - Cited public policy considerations - Respondents succeeded in petition before High Court - Life insurance policies were not social security - Other jurisdictions allowed trade and assignment of lapsed policies - Appellant's Circulars were illegal - Were contrary to Section 38 of the Act - Whether insurance policies are freely tradable and a...