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Do you have “Utmost Good Faith”?

Life insurance exists to protect a family’s financial future when the earning member is no longer alive. In return for premiums, the insurer agrees to pay a sum assured to the nominee upon the insured’s death, regardless of whether the...
February 12, 2026 Insurancepe 5 min read
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Life insurance exists to protect a family’s financial future when the earning member is no longer alive. In return for premiums, the insurer agrees to pay a sum assured to the nominee upon the insured’s death, regardless of whether the death occurs due to illness or natural causes (subject to policy conditions).

The NCDRC overturned the state ruling. It held that a life insurance contract is governed by utmost good faith and the proposer must disclose all material facts. The Commission concluded:


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insurancepe (Topspot Insurance Broking Pvt. Ltd.) is an IRDAI-licensed insurance broker committed to making insurance simple, transparent, and accessible for everyone. Our articles on theinsurancepe insights blog are brought to you by the experienced insurance professionals at insurancepe.   From breaking down complex policy jargon to covering the latest developments in the Indian insurance industry, our goal is to help you make informed insurance decisions.
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