LIFE INSURANCE CORPN.OF INDIA . vs S. SINDHU — C.A. No. 4492/2000

Summary of Life Insurance Corporation of India v. S. Sindhu (C.A. 4492/2000) The Supreme Court held that LIC is not liable to pay interest on the paid-up value of a lapsed life insurance policy. The Court reasoned that the paid-up sum (Rs.1,13,750) is a contractual obligation under the policy's non-forfeiture clause, not a refund of premiums, and the insurance policy explicitly excludes interest. No statute or the Interest Act, 1978 requires interest payment in this context, and the reduced sum became due only upon the insured's death. This case analysis is maintained by casestatus.in based on publicly available court records.