The Madurai Bench of the Madras High court today directed Life Insurance Corporation of India to pay the commission on policies and renewal commission in respect of the policies procured by its agent who resigned from service till such policies get expired.
Justice R.Subbiah, allowing a petition filed by D. Jerald Innocent Babu of Kulithalai in Karur district, said the petitioner who had left LIC to Join Bajaj Alliance Life Insurance Corporation.
The court said joining as an officer in the competing insurance company could not disentitle him to getting renewal commission for the policies procured by him unless it was established that he was involved in soliciting and procuring customers of LIC.
The judge said the LIC official (Divisional Manager Thanjavur) neither accepted his resignation nor settled his commission dues with in one month.
As per rules, an agent was supposed to give one month notice, which he had given. The judge rejected the contention of the LIC Divisional Manager that the petitioner had completed only nine years and seven months in service and his resignation could be accepted only if he completed ten years.
LIC claimed the petitioner suppressed the reason for his resignation.
The court quashed the order of the Divisional Manager which said that he was not entitled to get renewal commission from it as he would be soliciting and procuring customers for the competitor.
