It lays down that no policy can be challenged after two years
from the date of policy on the ground that any statement mode in the proposal
or in any report of the medical officer
or any document was inaccurate or false unless it is material to disclose and
it was fraudulently made and the policy holder knows at the time that it was
false or he suppressed the fact material to be disclosed, provided that nothing
in that section prevent the insurer from calling for proof of age of assured or
to adjust the rate of premium.
In
life
Insurance Corporation V/s Parvathavardhini
One
policy in March 1955 Rs. 20000/-
Second
policy in May 1955 Rs.30000/-
Husband
of Parvathvardhini died in May 1955 of
Hearth trouble.
It
was held by the court that as the company failed to examine the doctors the
statement made by the doctors in their reports have to be taken as true unless
evidence is adduced to contrary.
The
failure to examine the doctors and the other officers of the corporation or company
shall make the court draw an adverse inference against the company.
In
All
India General Insurance Co. Vs. SP Maheshwari
It
has been held that the insurance company is entitled to avoid the policy on the
grounds of deliberate misrepresentation about a drinking habit and
non-discloser of venereal disease.
Mithrolal
vs. Life Insurance Corporation
If
a period of 2 years has expired from the date of which the policy of life
insurance was effected that policy cannot be called in question by an insurer
on the ground that statement made in proposal for insurance on an any report of
a medical officer or referee or a friend of insured or in any other documents
leading to issue of the policy was inaccurate or false.
