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Articles 3116 views April 22, 2021
Life insurance helps people protect their family’s financial future in case of an unfortunate death during the policy term. When choosing a life insurance plan from any insurer, people often ask about Section 45 of the Insurance Act, 1938. According to this section, the initial three years in a life insurance policy is an important period as no insurer can question the claim if a policyholder’s death happens after this period. So, you should always see details about Section 45 of the Insurance Act in the last section of every policy brochure.
If you want a life insurance plan for yourself and your family, it is crucial to understand Section 45 of the Insurance Act in detail. Well, this article could help you in the same as we will be discussing important points related to it. Keep reading to know more about it!
Table of Contents
We are showing the important points that will help you understand Section 45 of the Insurance Act, 1938 better. Have a look!
According to Section 45 of the Insurance Act, any insurance company cannot question any life insurance policy after three years from the following situations
Life Insurance companies can question the life insurance policy of a policyholder on the ground of fraud. To do the same, the period should be within 3 years from
The life insurance company can question the policy on account of fraud in writing by giving the grounds and materials on which such a decision is based on. This will be sent to the policyholder or his/her legal representatives or nominees or assignees. If the said people can prove the authenticity of the claim by providing the required materials mentioning that there was no deliberate claim to suppress the fact, the insurance company cannot reject the claim.
Under Section 45 of the Insurance Act, fraud means any of the following acts committed by the policyholder or his/her agent, with an intent to deceive the insurance company or induce it to issue a life insurance policy.
Important Note: Mere silence will not be considered as an act of fraud unless it is the duty of the policyholder or his/her agent to keep silent to speak, or silence is in itself equal to speaking. It will also depend on the circumstances of a particular case.
A Life insurance policy can be called in question within 3 years based on any statement of or suppression of a fact related to the incorrect life expectancy of the policyholder in the proposal form or other insurance document. For this, the company should communicate in writing to the policyholder or his/her legal representatives or nominees or assignees. It will mention the ground and material on which the decision to reject the claim is based.
In such a case, the premium collected on policy till the date of rejection shall be paid to the policyholder or his/her legal representatives or nominees or assignees, within 90 days from the date of rejection of the claim.
No. This section will not be applicable for questioning age or adjustments based on proof of age submitted subsequently. The insurance company can ask for proof of age anytime. However, the policy will not be considered in question only because the terms of the policy are adjusted based on subsequent proof of age of the policyholder.