Monday, November 29, 1999

Insurance co can reject claim if info provide is false

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New Delhi, Jun 18 (PTI) An insurance company can reject a claim if the policy-holder provides false information about his health in the proposal form, a consumer court has said. "We find that the person, who put signature on the proposal form and seeks the policy, is responsible for all the information contained in the proposal form. The policy-holder cannot shift the burden upon the insurance company or its representative," the District Consumer Forum, Central, said. The Forum passed the order on a petition by the wife of the policy-holder seeking its direction to the Bharti AXA Life Insurance Company Limited to pay a claim of Rs 7.5 lakh along with a compensation of Rs 50,000. "There is no merit in the contention of the complainant that representative of the company usually and generally fill in the prescribed form of insurance on oath without asking question to the insured person," the Forum bench headed by President B B Chaudhary said. The policy-holder, Sanjay Jain, died within one year of taking the policy, following which his nominee''s claim was rejected for giving false information regarding the previous disease of heart ailment. "At the time of filling the proposal form for life insurance policy in 2008, the insured replied in negative about his ailment, particularly heart problem in the last five years," the Forum said. It said Jain died of the disease which was concealed in the proposal form of insurance. "The insured did not observe utmost good faith at the time of entering into insurance contract with the company," the Forum said.

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