LIC of India v. Anuradha AIR 2004 SC 2070

LIC OF INDIA V. ANURADHA

Whether, under Section 108 of the Indian Evidence Act, the exact date of death can be determined when a person has not been heard from for a period of seven years?

If a person’s life or death at a specific date is in question, it must be decided based on all evidence available at the time of the hearing.
Under Section 108, while the presumption of death applies after seven years of absence, there is no presumption as to the exact date or time of death; these must be established through evidence.

In 1986, Sham Prakash Sharma, husband of Anuradha, took a life insurance policy from Life Insurance Corporation of India (LIC), effective from February 8, 1986, with premiums payable biannually.
Premium payments were maintained for two years. On July 17, 1988, Sharma disappeared from Bombay and was not traced thereafter.
Anuradha filed a police report regarding Sharma’s disappearance. LIC notified Sharma’s residence on July 11, 1988, that the policy had lapsed due to non-payment of premium.
On June 29, 1996, Anuradha approached LIC for insurance benefits, asserting Sharma’s death, citing Section 108 of the Indian Evidence Act (presumption of death after seven years of absence).
LIC rejected the claim based on Rule 14 of its Insurance Manual, stating that premiums must continue unless a court decree declares the insured deceased.
Anuradha filed a complaint with the State Consumer Commission in Jammu & Kashmir, alleging LIC’s deficiency in service.
The State Commission ruled in favor of Anuradha, asserting that the statutory presumption under Section 108 overruled LIC’s manual rule.
LIC appealed to the Jammu & Kashmir High Court, which upheld the State Commission’s decision, ruling that LIC failed to prove Sharma was alive at the time of claim submission.

The Supreme Court ruled in favor of LIC, reversing the High Court’s decision, stating that the presumption of death under Section 108 does not specify the time of death.
The Court clarified that death is presumed only after seven years without news from the individual, and there is no presumption as to the exact date or time of death.
The Court held that LIC was justified in rejecting the claim, as premiums were not paid post-disappearance, and policy benefits could not be claimed without proof that the insured was deceased at the relevant time.
The Court appreciated LIC’s offer to release the benefits ex gratia, even though the policies had technically lapsed.