Life insurance customer applications and claims will be screened against a database to detect discrepancies
The new rules in the life insurance industry have made it impossible for an insurer to reject a claim after three years. For you, this is good as your insurer can’t deny your beneficiary insurance money if a claim is made after three years of buying a policy. Within three years, the insurer can investigate the claim and repudiate on grounds of fraud or misrepresentation. The rules state that life insurance companies must compulsorily pay all claims made three years after the date of commencement of a policy. No exceptions. So, if there is fraud, mis-statement or non-disclosure by the policyholder, the insurer has three years to discover and act on it. After that, the policy cannot be called into question.