Health insurance claim rejection due to non-disclosure of material alcoholism is valid, rules SC

The Supreme Court recently upheld LIC's decision to repudiate a health insurance claim under the Jeevan Arogya scheme due to non-disclosure of chronic alcoholism by the policyholder. Complete disclosure of all habits by the prospective policyholder is crucial for insurance validity, especially in benefit-based policies. This is because insurers assess claims based on the materiality of non-disclosure and its impact on the insured’s health.