Section 45 & 64 VB

Prepared By: Riya Biswas Nishi Jain Sarita Kumari

SECTION 45 : Introduction
No policy of life insurance effected

before the commencement of this ACT shall after expiry of 2years from the date of commencement of this ACT Can be challenged by insurer on the ground of following statement

1. In the proposal for insurance, or 2. In any report of a * Medical officer, or * Referee, or * Friend of the insured, or 3. Inaccurate false document of the policy unless the insurer shows that: *Statement was a material matter *Suppressed facts to be disclosed

Liability under a policy of life insurance,

Provided that:

2year after the policy was effected (i.e. date of commencement of risk) the life insurance company will have to prove: That their was suppression of facts by the life assured. That the fact so suppressed was a material fact and That such suppression was done intentionally with a view to defraud the insurance company

 In case of Death of policy Holder

* The company can avoid the liability after providing suppression of material facts by the life assured * Its not necessary to prove whether such suppression was intentional or unintentional in such cases In case of non payment of premium * Lapse of policy due to non-payment of premium the legal provision of Sec-45 is silent
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Recommendation by Law Commission

The period beyond which no repudiation of

life insurance policy on any ground whatsoever, be fixed at 5 yrs instead of 2yrs. The insurer can repudiate the policy of Life Insurance at any time before the expiry of 5year from the date of issuance of such policy The misstatement of facts will not be considered material No repudiation of the policy to be 6 permitted on the grounds of fraud

Section 64 VB
According to section 64 VB, The risk

on part of insurer shall begin only after it receives the premium. In case of risks for which premium can be ascertained in advance,risk may be assumed not earlier than the date on which the premium has been paid in cash or cheque to the insurer. As per the regulations in case the premium is not realised by the insurer,there is a distiction between the status of a general insurance policy and that of a life insurance policy.

Specific and Open Policies

SPECIFIC POLICY-In respect of

specific policy,the full premium is required to be paid before the movement of goods.
OPEN POLICY-The insurance

company can agree to accept advance premium based on projected exports for a period of 3 to 6 months

VB

Policies issued to Govt.& Semi-Govt.

bodies Policies under Various insurance Policies of reinsurance Declaration policies Marine covers other than hulls Annual insurances connected with aircraft, hull other aviation risks and marine hulls

Policies related to co-insurances Policies of National Agricultural

Insurance Scheme

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Thank You

QUESTIONS

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