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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...