Monday, August 26, 2013

Forfeiture in certain events

After stating the non-forfeiture regulations in the policy the insurer goes on to state the forfeiture conditions in certain events under the 'conditions and privileges’. In case premiums are not paid or any of the conditions or endorsements are contravened this policy shall be void. If it is found that any untrue or incorrect statement is given in the proposal, personal statement, declaration and connected statements or any material information is withheld, then and in every such case the policy shall be void. In consequence of these all the moneys paid to the insurer shall be forfeited and all claims to benefits under the policy shall cease. All these are subject to provisions of Section 45 of the Insurance Act, 1938 and the relief provided by the non-forfeiture regulations given in the policy. Forfeiture and non-forfeiture conditions and regulations vary from insurer to insurer. Therefore it is always advisable to read your life insurance policy to find out what are the specific conditions and privileges of your policy.

Key words:

Conditions and privileges of policy
Forfeiture of policy benefits
Section 45, The Insurance Act, 1938

Non-forfeiture regulations

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