Explain the fraud clause in the term insurance policy document.

POSTED BY Sunil Kumar ON March 21, 2011 9:47 am COMMENTS (2)

Hi All,

I have the following statement in the policy document.  Can you please elorate with examples as what are the fraudulent cases that can arise assuming that one has submitted correct DOB proof and one is expired/dead and additionally the medical tests were initially done before the policy was being provided

If you are or the nominee or anyone acting on your behalf or at your or his direction or with your or his knowledge makes or advances any claim under this policy knowing it to be dishonest, misleading, false or fraudulent in any respect, then this policy shall be void and any amount actually paid or potentiall payable shall be forfeited.


Sunil Kumar

2 replies on this article “Explain the fraud clause in the term insurance policy document.”

  1. Sunil Kumar says:

    Hi MoneySavingsHelp,

    Isn’t it Insurance company’s responsibilty to check for the preexisting disease before providing a term insurance? There could possibility that the person may not be aware or gets the disease after the policy purchase?

    Sunil Kumar

  2. The statement simply means that if the policyholder or nominee “submits” any kind of false documents to get claim like wrong date of birth proof, or hiding pre-existing critical diseases like Cancer, AIDS etc., the company has to right to reject the claim.

    Other such fraud case can be submitting fake death certificate to get death claim amount.

    The summary is NEVER give any kind of wrong information to company. If the company comes to know it any stage, it will reject your claim.

    Hope it will help you.

Leave a Reply

Your email address will not be published. Required fields are marked *

This site uses Akismet to reduce spam. Learn how your comment data is processed.