One-liner: An insurer can't repudiate a claim citing an existing medical condition that was disclosed by the insured in the proposal form, once the policy has been issued, the Supreme Court has said.
Crux of the matter: A bench also said a proposer is under a duty to disclose to the insurer all material facts within his knowledge. The proposer is presumed to know all the facts concerning the proposed insurance, it added.
Need to know: While the proposer can only disclose what is known to him, his or her duty of disclosure is not confined to actual knowledge. It also extends to those material facts he or she ought to know, the court said.
Driving the news: Nanda had bought an Overseas Mediclaim Business and Holiday Policy as he intended to travel to the US. On reaching the San Francisco airport, he suffered a heart attack and was admitted to a hospital, where angioplasty was performed.
Bottom line: The apex court said the repudiation of the policy by the United India Insurance company was illegal and not in accordance with law.