[Solved] An insurance company paid money by mistake on a policy which had lapsed. Though the company was not ignorant of the fact of the lapse, this was overlooked at the time of payment. Can the company recover the amount?

Q.	An insurance company paid money by mistake on a policy which had lapsed. Though the company was not ignorant of the fact of the lapse, this was overlooked at the time of payment. Can the company recover the amount?
A.	The company cannot recover the amount
B.	The company can recover the amount
C.	The company once paid the money is estopped to demand back by virtue of 'Doctrine of Estoppel'
D.	The company can revive the lapsed policy and thus regularize the payment
Answer» B. The company can recover the amount

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Fundamentals of Laws and Ethics

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