Insurance Law

The Insurance Laws (Amendment) Act, 2015, introduced the concept of the Beneficial Nominee. Under this provision, if a nominee is an immediate family member—specifically a spouse, child, or parent—they are considered the absolute owner of the proceeds. This status allows them to keep the funds, overriding the claims of other legal heirs.

Suppression of details regarding the illness suffered by the insurance proposer/assured, the previous treatment administered to him including hospitalization, and so on, which are raised as specific queries in the proposal form of the insurance company are material facts, and in the event of any material suppression or furnishing of false information by the proposer/assured regarding the same, the Insurance Company would be entitled to repudiate the policy, says the Kerala High Court in Life Insurance Corporation v Rosamma Varkey.