POSTED BY April 26, 2012 10:51 am COMMENTS (17)ON
‘No Policy of life insurance shall after the expiry of two years from the date on which it was effected, be called in question by an Insurer on the ground that statement made in the proposal for insurance or in any report of a medical officer, or referee, or friend of the insured, or in any other document leading to the issue of the Policy, was inaccurate or false, unless the Insurer shows that such statement was on a material matter or suppressed facts which it was material to disclose and that it was fraudulently made by the policyholder and that the policyholder knew at the time of making it that the statement was false or that it suppressed facts which it was material to disclose.’
On what ground insurer can still (after two years) call the policy in question and reject the claim? Can someone please provide couple of examples?
Also, what are the cases which could have been rejected within two years but will be honored after two years? Some examples please.