In Brief
Life Insurance Corporation of India issued a non-medical Mediclaim policy to Manish Gupta for Rs 1,60,000. When Gupta underwent mitral valve replacement surgery and claimed medical expenses, LIC repudiated the claim, alleging non-disclosure of pre-existing rheumatic heart disease. Consumer forums had allowed the claim, finding the hospital's recording of past medical history insufficient proof of the patient's disclosure. The Supreme Court allowed LIC's appeal, holding that the insured's failure to disclose the pre-existing cardiovascular condition in the proposal form was a valid ground for repudiation. In non-medical policies, the proposer bears an absolute duty of truthful disclosure under the doctrine of utmost good faith in insurance contracts.
The lawyer headnote and full judgment text are available to registered users.