Suicide

Under the title ‘Conditions and privileges’ is given an important subtitle ‘suicide’ that is intended to protect the interests of the insurer. It states that the policy shall be void if the life assured commits suicide (whether sane or insane at that time) on or after the date on which risk commenced but before the expiry of one year from the date of the policy. As a consequence no death claim will be admitted under the policy. You will recall that we have in one of our earlier Posts referred about date of commencement, date of risk and date of the policy. Some companies admit third party interests created through absolute assignment even in the case of suicide. For example if a policyholder assigned absolutely his policy in favour of a bank against a loan granted by the bank and then commits suicide (within a year of date of the policy) the insurer will admit the death claim from the absolute assignee (to the extent of the loan amount). For this the insurer must have received notice of assignment at least one month prior to date of death.

Key words:

Conditions and privileges of policy

Suicide

Void policy

Assignment