Court finding pillar - Supreme Court Insurance Act 1938 Section 45 as interpreted in Mithoolal vs LIC (AIR 1962 SC 814) and reaffirmed in Mahakali vs Future Generali (2024 INSC 296, Apr 12 2024) and Mahaveer vs Exide (Feb 25 2025): life policy cannot be questioned after 3 years except on fraud, and if misstatement not fraud, premium refund in 90 days.
Method
Primary: Insurance Act 45, AIR 814, 2024 INSC 296, Mahaveer low-value not fraud, plus Feb 2026 NCDRC trio. Secondary: LegalServiceIndia explainer.
The Modern Test (Post-Mahakali)
After 3 years, insurer must prove with authenticated docs (signed proposal + receipt + co-insurer confirmation) that proposer knew and suppressed material fact with intent. Mahakali: table alone fails. Mahaveer: low-value LICs not material. HDFC Feb 4: May 27 adenocarcinoma predated No → proved, so upheld. Gambhir: Sep 13 discharge 2 months could not prove Jun 27 knowledge, so allowed. Gurshinder: prompt FIR cures late intimation.
What to Keep
Keep proposal photocopy + receipt + CIS where prior policies must be listed. After repudiation, ask for three authenticated docs within 15 days.