Life Insurance Corporation of India v. Om Prakash
Citation: 2024 INSC 870
Court: Supreme Court of India
Date: November 13, 2024
Overview:
This case involved a dispute over the repudiation of a life insurance claim by the Life Insurance Corporation of India (LIC). The respondent, Om Prakash, had filed a claim following the death of his wife, which LIC rejected on the grounds of alleged non-disclosure of material facts.
Key Issues:
- Non-Disclosure: Whether the insured had failed to disclose pre-existing medical conditions at the time of policy inception.
- Burden of Proof: The extent of the insurer’s responsibility to prove intentional suppression of material facts.
Judgment:
The Supreme Court ruled in favor of Om Prakash, stating that LIC failed to provide conclusive evidence of deliberate non-disclosure by the insured. The Court emphasized that minor ailments not impacting the insured’s health significantly do not constitute material facts requiring disclosure.
Implications:
This judgment reinforces the principle that insurers must provide clear evidence when alleging non-disclosure to repudiate claims. It underscores the necessity for insurers to conduct thorough investigations before issuing policies and highlights the importance of clear communication with policyholders regarding disclosure requirements.
