Insurance Company Cannot Assume Additional Risk Without Prior Premium Payment Under Section 64VB: Supreme Court

The Supreme Court has held that an insurance company cannot retrospectively extend an insurance policy to cover a risk that had already arisen before the required additional premium was paid. The Court ruled that Section 64VB of the Insurance Act, 1938 prevents an insurer from assuming an additional risk unless the required premium has been received or has been validly guaranteed in advance. A Bench comprising Justice Sanjay Karol and…