On Suicide Clause
A Life Insurance policy in India excludes suicide for one year. Should a client desire that suicide be permanently excluded, as per religion / wish, it would be impossible in India. Thus, this rigid exclusion disregards a client’s personal wishes and making the insurers richer!
Section 309 of the Indian Penal Code (IPC) states – attempt to commit suicide and doing any act towards the commission of such offence is punishable. By not excluding suicide permanently, are insurers encouraging the right-thinking members of a civil society to violate the law? Would suicide clause in life insurance thus becomes illegal?
Further, if an attempt to suicide results in Permanent Total / Partial Disability, and assuming an insured is covered for this benefit, will amount to making money by violating the law of the land.
Internationally the ‘Suicide Clause’ is not rigid. Hence any life insurance clause such as this must be seriously looked into. The increasing rate of suicide in India (https://ncrb.gov.in/sites/default/files/adsi2020_Chapter-2-Suicides.pdf) is enough evidence.
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