In Brief
The appellant held a life insurance policy since 1993 and took a loan against it in 2001. When he stopped paying premiums and requested the surrender value, the insurer calculated it at Rs 2,268 after deducting the outstanding loan and interest. The appellant contested this, claiming he was entitled to the full bonus amount. The Supreme Court held that the insurer correctly computed the surrender value in accordance with Section 113 of the Insurance Act, 1938 and the policy terms. The surrender value of a subsisting bonus is not its full amount but only its calculated surrender value using an approved actuarial factor. The insurer's calculation method was duly approved and consistently applied. Appeal dismissed.
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