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Have you taken a policy? Don’t hide truths!


Insurance policy is taken in order to give financial security to family and dependents if something happens to the policy holder. But are you disclosing all truths while taking a policy? Being unaware of policy rules may be the reason for this but some do it intentionally. This is causing problems for nominees during claim.

Mister A wants to take an insurance policy. He has a wife and two kids 10 and 8. He got cancer about 4 years back and took treatment and he is fine now. But, while taking a policy now he concealed this fact. But with this if any claim is made in the future, the insurance company can reject it after going through his health history. This should be remembered by every one who is taking a policy.

Insurance policy is nothing but an agreement of belief between the policy holder and the insurance company. While filing the application for policy, policy seeker should fill all of it after clearly understanding them. A person can himself only know his health habits. So, he is the right person to fill in the application in the clear detail. If any wrong info is given intentionally, you are shielding the insurance company from knowing the truth. In such cases the company may consider either completely canceling the agreement or rejecting the claim when made.

Sometimes, the insurance company may ask for medical tests based on the age and the amount sought by the seeker. If the amount is small, medical tests are not mandated. In such cases, the sole source of information is the policy seeker himself.

What happens when truths are hidden while taking a policy? What are its effects on the policy?


Insurance company makes several steps to avoid deceit while taking a policy. Since the health and habits of a person are best known to himself, if these are hidden, the insurance company considers as intentional.

Effect on others….while deciding the premium, policy payments of the same age group is considered. When the company comes to know the health condition and others matters about the policy seeker, the company may ask for a higher premium. If a person who has hidden his health status claims a higher amount, the insurance company may think of raising premium for the plan in total. This may affect the healthy policy holders.

Insurance act…when examined different judgements given by courts as well as insurance proposal form, the need for disclosing truth during policy taking can be discerned. There is every chance of claim rejection if truths are not disclosed.

Not useful in need….

Insurance policy is taken to help the dependents when the bread winner is no more and this acts as a major support to the bereaved family. what if the insurance company rejects payment due to facts being not disclosed while taking the policy? Will this serve the purpose of the person who took the policy? A small lie has deprived his family of a large support in his absence. Not disclosing truth can delay the claim process or even rejection sometimes.

*It should be said that there will be no hassles if the proposal form is filled personally and truthfully. The important thing to note here is that no insurance company can reject a claim without showing valid reasons.

It is our responsibility to not only take an insurance policy but make sure that it serves its purpose. So, do remember to make the proposal form fool proof and only then can your family have the real support when needed.