All life Insurance contracts are governed by section 45 of Insurance Act – meaning indisputability of Insurance Contract after 2 years of policy commencement or policy reinstatement.
What Does Mean of Section 45 in Insurance to General Public
A: Death Cover
- Any death within first three years of policy or reinstatement of Policy will be called Early Death and Insurer can and should do proper investigation before paying the claim.
- Insurer are custodian of Public fund and it is their duty to ensure that no one take advantage of the system by taking Insurance Policy by hiding facts and giving wrong information ,
- In three year, Insurer has right to dispute the claim and onus to prove the validity of facts is on the family of nominee.
- If death happens after three years then Insurance Company can not dispute the claim on the basis of non declaration of material facts. Which means no insurance company can deny the claim if the event occurs after two years of policy commencement or reinstatement .If a company still wants to argue then onus of establishing the facts is on the Insurer.
- All Iife insurance contracts can be terminated by Insurance company within three years of Policy if Insurer feel that contract has been done on wrong declaration.
- In case of Policy termination within three year, Insurance Company will have to refund all paid premium.
- Medical History
- Declaration of early deaths in family – if parents have died before the age of 50.
- Declaration of early age morbidity in family
- Occupation Hazards like working for Nuclear Establishment or Mines
- Adventures Hobbies like Motor Racing
- Details of previous policies
- Visits to countries in danger zone.
If you have any kind of problem regarding Section 45 or want to know more about it please reach us to below given details.
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