Section 45 of the Insurance Act, 1938 is one of the most policyholder-friendly provisions in Indian insurance law. It places strict limitations on an insurer's ability to reject or contest a life insurance claim.
The simple version
- Within 3 years of policy issuance: insurer can contest the claim if there is evidence of fraud or misrepresentation
- After 3 years: the insurer cannot repudiate (reject) a life insurance policy on ANY ground, including non-disclosure of information
What this means for you
Once your policy has been in force for 3 years, your nominee's claim is extremely well protected. Many insurers exploit the first-3-year window to reject claims — this is why early and accurate disclosure is critical.
What "misrepresentation" means in law
For an insurer to contest a claim within the 3-year window, they must prove three things:
- A statement was made by the policyholder
- The statement was false or misleading
- The policyholder knew it was false at the time (i.e., fraud, not innocent error)
What to do if your claim is rejected citing non-disclosure
If the policy is over 3 years old, any rejection under non-disclosure grounds is illegal. You can challenge this at the Insurance Ombudsman and you will very likely win. Cite Section 45 explicitly in your complaint letter.
Still confused? Talk to a licensed advisor — free.
Licensed advisor · 100% free.