In Brief
The Supreme Court upheld an insurer's right to repudiate a life insurance claim due to non-disclosure of a prior insurance policy, even within two years of the policy's commencement. The insured failed to disclose that he had obtained a policy from another insurer barely two months before applying to the appellant. The Court held that information specifically sought in a proposal form carries a presumption of materiality. Non-disclosure of a prior policy is material because it allows the insurer to assess the insured's human life value and financial need for multiple policies. While Section 45 of the Insurance Act limits repudiation after two years, the principle of utmost good faith governs all insurance contracts. The Court allowed the appeal and dismissed the consumer complaint, directing that the interim relief already withdrawn need not be recovered.
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