In Brief
This case concerns when an insurance policy becomes effective. Two consumers claimed death benefits for suicides occurring within 12 months, arguing the policy began when they submitted their proposal or paid a deposit receipt. The insurance company claimed the 12-month suicide exclusion period ran from the policy issuance date. The Supreme Court held that the policy issuance date—not the proposal date or deposit receipt date—marks the policy's commencement. Mere cheque tender is insufficient; the cheque must be encashed. For reinstated policies, the reinstatement date is the relevant commencement date. Strict adherence to policy terms is required. Both claims were rejected, and the appeals were allowed.
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