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