Insurance

Insurer's liability

— Interest — Power of courts/ tribunals, to direct the insurer to pay interest — Held, courts cannot rewrite the contract of insurance and cannot direct the insurer to pay interest contrary to the terms of the contract, (2006) 5 SCC 258-A

Insurance

Insurer's liability

— Interest — Lapsed life insurance policy — Policy providing for payment of reduced sum by treating the lapsed policy as a paid-up policy — No stipulation for payment of interest on the amount of premiums — Policy lapsing and the assured dying prior to the date of maturity — Insurer (LIC) computing the paid-up value of the policy in accordance with the said condition of the policy and paying the same to the nominee of the assured on execution of a full and final settlement discharge by the nominee — Payment made within a short period of three months from the date of intimation of the death — Such payment, held, was not refund of the premiums — Hence, the insurer could not be directed to pay interest thereon from the dates of respective date of payment of the premium — Circumstances in which interest for pre-litigation period can be awarded, restated, (2006) 5 SCC 258-B

Interest

Interest Act, 1978

— Preamble and Statement of Objects and Reasons — Object of enactment of the Act restated, (2006) 5 SCC 258-C

Interest

Interest Act, 1978

— S. 4(1) — Scope — If permits award of interest on equitable grounds — Question left open, (2006) 5 SCC 258-D