In Brief
A widow sought accident benefits under her deceased husband's life insurance policy. The policy had lapsed in October 2011 when he missed a premium payment. He met with an accident in March 2012 and paid the overdue premium shortly after without disclosing the accident. The Supreme Court held that accident benefits are payable only if the policy is in force on the date of accident. Since the policy was lapsed when the accident occurred and was revived afterwards without disclosure, the accident benefit claim was properly rejected as a breach of good faith (uberrima fides) required in insurance contracts. The appeal was allowed.
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