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Insurance lawyer: concealment of information is absolute ground for repudiation of the claim, if the claim is raised before expiry of two years from the date of policy; SC.

Supreme Court of India 

Justice DY Chandrachud

As per section 45 of the act, if the claim is raised before expiry of two years from the date of policy, and it is found that any information has been concealed  by the insured,  then, in that case, it is absolute ground to repudiate the claim. It is immaterial whether the information which is concealed, is material information or not - the said aspect of matter is not relevant and cannot be gone into by the court.

It was held in the case titled as "Reliance Life Insurance Versus Rekhoben Naresh Bhai Rathord", that non disclosure of earlier life insurance policies is material concealment, and ground to repudiate the Insurance claim. The concurrent findings in judgments of NCDRC and State Commission were set aside.

It was further held that the insured cannot take a plea- that it signed the blank form and the agent filled the form on its own. The Supreme Court of India held that the insured is bound by the information written in the application form, and he cannot justify the concealment by saying - that he only signed the blank Insurance form. The principles of utmost good faith reiterated by the SC while dismissing the claim of the insured - which was originally raised by way of consumer complaint.


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