I bought a life insurance policy on the insistence of a friend. He wanted to help the agent meet his targets. But I failed to disclose that I have high blood pressure (BP) and have been a diabetic for the past 15 years. Will this non-disclosure of facts impact the policy proceeds in the event of a claim?
Shalu Goel, Gurgaon
Your gesture to help an agent has been at the cost of risking the proceeds or the policy coverage itself. Yes, the insurance company can reject a claim in case of misrepresentation of facts. Non-disclosure of crucial health conditions that are known to the insured amounts to hiding of crucial facts and can lead to rejection of a claim. If there were an unfortunate development related to any illness that is not disclosed by a person at the time of buying a policy, his nominee/family would be dragged through unnecessary complications when the insurer discovers it while processing the claim.
