ISSUE:
Whether payment of premium by the insured to the general agent of the LIC can be regarded as payment to the insurer so as to constitute a discharge of liability of the insured?
RULE:
Section 187 of the ICA explain the meaning of the express and implied agency. Section188 makes it mandatory for the agent to have the authority to do an act that he does. Section 237 says that an agent can do an act on behalf of the principal even if he does not have the authority if the principal makes the third party believe that the said person had the authority as an agent to do that act, principal can be held liable for the same.