Incontestable clause applicable to insurance policies in India?

POSTED BY umesh ON May 17, 2011 1:15 pm COMMENTS (3)

Hello All,

While reading on Life Term Insurances online, I came across a term called as “Incontenstable Clause”. The clause is generally applicable to Insurer. It’s significance can be realized from following description:

“These provisions protect the policyholder from the insurance company claiming the policyholder misrepresented something. The insurance company has a period after you get the policy to make sure everything you told them is accurate and that you held nothing back. That is why many require you to go through health exams and give a complete medical history. Once they get through that period, they cannot make any claims to revoke the policy on information you did not disclose. These are usually 24 months long.”

My question is: Is this claus applicable for Insurance companies in India? If yes, generally what is the period after which incontestability gets enforced?

I have checked the brouchers of term plans from different companies. However, noone seems to have any information about this.



3 replies on this article “Incontestable clause applicable to insurance policies in India?”

  1. umesh says:


    Thanks for a valuable reply.

    The question I asked was not with intention of giving a wrong info, wait for a period, and enjoy the insurance.

    At the time of claim, insurance companies will use all possible tricks and try to dig deep of something rubbish and can come up with a reason of wrong info which does not makes much sense.

    Example, my friends mother had an accident which caused damage to her jaw. Insurance company rejected the claim saying it is dental surgery. Does that make sense?

    Indian market is not really a consumer friendly market. Such rules/clauses are life saver at times.


    1. Umesh

      Have you looked into the policy if dental surgery is covered or not . Its very known fact that generall dental thing is never covered . I assume that you didnt look into the policy at all . ?

  2. Umesh

    That close is only limited to small things , you cant use this clause to give wrong info and wait for 2 yrs to make sure you will still be paid , there is a book called IC-33 which is learned by insurance advisors , it ha .zs the list of those things which a company cant bug you with after 2 yrs passes , but still major points which affects your premiums can be used as the basic of rejection of claims , and its totally fine from business perspective .

    I have seen many people asking me that if they can give wrong info like , health related , age or some other important thing , wait for 2 yrs and see if nothing happens and there after they will be paid the claim and company can not blame them . Its does not work that way.


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