In Brief
A life insurance company sought to repudiate a claim after the policyholder's death, alleging the proposer had failed to disclose a previous insurance policy obtained two months earlier. The SCDRC and NCDRC allowed the claim, reasoning that non-disclosure of a prior policy was immaterial as it would not influence a prudent insurer's decision. The Supreme Court reversed, holding that information specifically sought in a proposal form is presumed material, and the insurer may repudiate within two years for inaccurate statements or suppression of facts without proving materiality. The Court upheld the insurer's right to repudiate, allowing the appeal and dismissing the consumer complaint, though permitting the respondent to retain 50% already withdrawn.
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