Life Insurance Claims: Insurers Can't Reject After 3 Years, Policyholders Protected

• Under Section 45 of the Insurance Act, 1938, insurers cannot reject life insurance claims for non-disclosure or misstatement after three years.
• The "3-year rule" applies from the date of policy issuance, risk commencement, or revival, ensuring strong protection for policyholders and their families.
• The only exception is in cases of proven fraud, where the burden of proof lies entirely on the insurance company.
• India's Claim Settlement Ratio has significantly improved from 85% in 2014 to over 99% now, reflecting industry commitment to genuine claims.
• Policyholders' families must be aware of their legal rights and persist in follow-ups to ensure claims are settled, even if initially challenged by insurers.