Renewal of insurance policy cannot be denied on the basis of insured contracted disease during policy period

Last updated: 28 October 2022

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The Gujarat High Court has ruled that insurance companies cannot refuse to renew a Mediclaim policy simply because the policyholder contracted a disease during the term of the expiring policy. As long as the renewal premium is paid on time, the policy must be renewed without excluding any diseases already covered. This decision clarifies that insurers cannot arbitrarily deny renewal, even if the policy becomes more costly due to the insured's illness.

Court :
Gujarat High Court

Brief :
In case of renewal without break in the period, the Mediclaim insurance policy will be renewed without excluding any disease already covered under the existing policy which may have been contracted during the period of the expiring policy. Renewal of Mediclaim insurance policy cannot be refused on the ground that the insured had contracted disease during the period of the expiring policy so far as the basic sum insured under the existing policy is concerned.

Citation :
United India Insurance Company vs. Mohanlal Aggarwal

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Judgement posted by

FCS Deepak Pratap Singh

Associate Vice President - Secretarial & Compliance (SBI General Insurance Co. Ltd.)

Dear Friends, MyselfFCSDeepak P. Singh ( B.Sc.. LLB, FCS. FIII, CIAFP, CRMP, ID) , A Fellow Member of ICSI, Law Graduate ,Fellow Member of Insurance Institute of India, Certified Independent Director ,Certified Insurance Anti Fraud Professional , Certified Risk Governance Professional ( ICSI-III) and cleared Limited I ... Read more

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