Insurance Form Honesty: Avoid Big Losses, Legal Trouble
Your Money
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Moneycontrol•08-01-2026, 16:19
Insurance Form Honesty: Avoid Big Losses, Legal Trouble
- •Providing false or incomplete information on insurance forms can lead to claim rejection, policy cancellation, and legal penalties.
- •Under IRDAI rules, proven fraud results in claim rejection, policy cancellation, and no premium refund.
- •Legal penalties for misrepresentation can include up to 3 years in jail or a 10 lakh rupee fine; even small lies can fall under Section 420.
- •Insurance companies now use digital verification and medical records, making misrepresentation riskier than ever.
- •Always honestly disclose medical history, smoking habits, alcohol consumption, and any pre-existing illnesses.
Why It Matters: Honesty on insurance forms is crucial to secure claims and avoid severe financial and legal repercussions.
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