Police department held liable for lapsed policies

The National Commission dismissed the police department's defence of discontinuing the premium deductions based on oral instructions, without obtaining a written confirmation

Sakinder Singh, a constable with the Punjab police, had taken three Jeevan Saral with profit policies from the Life Insurance Corporation (LIC) of India on August 31, 2012. Each policy was for Rs 5 lakh, with a monthly premium of Rs 2,062 deducted from his salary.

Singh passed away on June 18, 2014, due to illness. When his widow, Jagdeep Kaur, and children Lovepreet, Manpreet, and Sukhpreet claimed the policy benefits, they were shocked to learn that the policies had lapsed because the premiums had not been paid since November 2012. This was surprising since the premiums had