"The relationship of principal and agent is fiduciary relationship". In the light of this

statement, explain the concept of agency pointing out the difference, if any, between an agent

and a trustee. LIC launched a salary saving insurance scheme for employees wherein the

employer was to deduct the premium from the salary of the employees and deposit the same

to LIC at concessional rates. Employer X got the scheme for his 200 employees.

Subsequently, because of losses, X failed to give salary to his employees and also did not

deposit the premium on their behalf. LIC consequently refused to pay the assured amount to

those employees who asked for it. These employees claimed that X was the agent of LIC for

their scheme. Hence LIC must pay the assured amount. Will the employees succeed?