The policyholder pays the premium through the insurance agent. The agent did not pay the money to the insurance company. Instead, the agent misuse the money to pay his personal expenses. 

Read this article.

The correct approach is for the policyholder to pay the premium directly to the insurance company. The agent should show the policyholder how to make this direct payment. 

The insurance company also has a duty to look out for the cases where the agent pays the premium on behalf of the policyholder, i.e. the payment is made from the agent's bank account, rather than the policyholder's bank account. When this is identified, the insurance company should stop this third party payment. 

Tan Kin Lian