Question

Mr. Mohan/Shah took a health insurance policy for Rs. 2 lakhs without disclosing proper facts. After three years, he was admitted in hospital due to acute tuberculosis. During investigation it was found that he had been a chain smoker for the past five years.

1. Will he be able to claim health insurance? Why?
2. Identify the Principle of insurance.

Answer 1

1. No. He did not disclose material facts to the insurance company.
2. Utmost Good Faith.