What is Section 45 in Insurance?

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What is Section 45 in Insurance?

Video transcription of the above video: What is Section 45 in Insurance?

Hello, Shailesh from Insurance Samadhan. We are here to provide you with the gist related to Insurance and try to resolve the insurance-related problems of our customers. In the last blog, I’ve discussed Term Insurance and I have given the reference of Section 45. In this blog, I will be giving some more useful information related to section 45. Section 45 applies to all Life Insurance products.

According to Section 45 – A company can reject the claim for three years, considering that the customer has not declared at the time of proposal and had hidden facts from the company. These material facts include hiding about the drinking and smoking habits, occupation, playing adventurous sports, and many more. You are expected to disclose all these material facts to the company at the time of the proposal. If the company feels that you have hidden some fact and not declared properly, then it has the right to reject the claim.

The other useful information that comes here is after the period of three years, no claim can be rejected by the Insurance Company until you are being involved in some sort of criminal act. After the payment of three annual premiums, no claim can be refused to pay under any circumstance. Hope this clears the rule of Section 45. I will be writing more about such Insurance related topics so that you can get clarity. 

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Thank you


  1. I want a buy health policy for my brother nd he have a already one disease so m confused which policy I buy for my brother pls help me for suggestion

  2. I have a term insurance policy for 1.5 crores.Previously my policy proposal for a term insurance was rejected as I am unable to provide a normal biopsy report for a previous surgery I have done.
    My agent didn’t disclose about this policy rejection to my current insurer.Is there a chance for claim rejection after 3 years of policy.

    • Dear Bobby,

      While buying insurance you need to disclose if previous proposal rejection has happened. This may lead to rejection at a later stage depending on how important the fact was for the purpose of underwriting. Though Section 45 applies but if the fact is material then we have seen rejections.

      Kind Regards,
      Team Insurance Samadhan

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