SC ruled in favor of appellant, overturning insurer's ...

Insurance Company Cannot Deny Claim When They Were Already Aware of Policyholder's Other Insurance Policies

March 1, 2025

Case Laws     Indian Laws     SC

SC ruled in favor of appellant, overturning insurer's repudiation of policy claim. While insurance contracts require uberrima fides and disclosure of material facts, failure to disclose existence of other insurance policies did not constitute material suppression in this case. Court noted insurer was aware of policyholder's existing higher-value policy with another company and still chose to issue coverage, demonstrating acceptance of insured's premium payment capacity. The insurer's knowledge of other policies and subsequent policy issuance negated their repudiation grounds. Material facts must influence prudent insurer's risk assessment, which was not established here. Appeal granted with policy benefits to be paid to appellant.

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