In Brief
In this life insurance dispute, the Supreme Court examined whether an insurance company could reject a death claim due to the deceased's non-disclosure of pre-existing medical conditions and recent hospitalization. The insured's proposal form contained specific queries about ailments and medical treatment, which were not answered truthfully. While the National Consumer Disputes Commission had set aside the insurer's repudiation, the Supreme Court held that non-disclosure of material medical facts justifies claim rejection under insurance law. Nevertheless, invoking its constitutional powers, the Court upheld a direction allowing the claimant to retain the policy amount already paid, while clarifying that the NCDRC's legal reasoning was incorrect.
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