Product Name: Max Life Smart Secure Plus Plan (UIN 104N118V08)
Date of filing: 19
th
April 2024
Page 26 of 40
paid plus loading for modal premiums paid (but exclusive of taxes, cesses & levies as imposed by the Government from time to
time), to the nominee.
If policyholder chooses to increase sum assured using Voluntary Sum Assured Top-Up option, suicide clause will be applicable
on the increased sum assured due to Voluntary Sum Assured Top-Up option. Hence, if the life insured commits suicide within
12 months, whether sane or insane, from the date of increase in Sum Assured due to Voluntary Sum Assured Top-Up, the
nominee will get Sum Assured under the base policy + return of additional premium (Total Premiums Paid plus underwriting
extra premium paid plus loading for modal premiums paid) that was paid to increase the Sum Assured because of Voluntary
Sum Assured Top-Up. The increased sum assured will not be paid as suicide happened within 12 months of increase in sum
assured due to Voluntary Sum Assured Top-Up.
Statutory impositions:
Premiums payable and benefits secured under your policy will be subject to applicable statutory levy, cess and taxes includin g
taxes at the prevailing rates as imposed by the Government from time to time. The Policyholder will be responsible for paying
these statutory impositions.
Section 45 of the insurance Act, 1938 as amended from time to time states that:
(1) No policy of life insurance shall be called in question on any ground whatsoever after the expiry of three years from the date
of the policy, i.e. from the date of issuance of the policy or the date of commencement of risk or the date of revival of the
policy or the date of the rider to the policy whichever is later.
(2) A policy of life insurance may be called in question at any time within three years from the date of issuance of the policy o r
the date of commencement of risk or the date of revival of the policy or the date of the rider to the policy, whichever is later,
on the ground of fraud:
Provided that the insurer shall have to communicate in writing to the insured or the legal representatives or nominees of the
insured the grounds and materials on which such decisions are based.
Explanation I – For the purposes of this sub-section, the expression “fraud” means any of the following acts committed by
the insured or by his agent, with the intent to deceive the insurer or to induce the insurer to issue a life insurance policy :
a) the suggestion, as a fact of that which is not true and which the insured does not believe to be true;
b) the active concealment of fact by the insured having knowledge or belief of the fact;
c) any other act fitted to deceive; and
d) any such act or omission as the law specially declares to be fraudulent.
Explanation II – Mere silence as to facts likely to affect the assessment of the risk by the insurer is not fraud, unless the
circumstances of the case are such that regard being had to them, it is the duty of the insured or his agent, keeping silence to
speak, or unless his silence is, in itself, equivalent to speak.
(3) Notwithstanding anything contained in sub-section (2) no insurer shall repudiate a life insurance policy on the ground of
fraud if the insured can prove that the mis-statement of or suppression of a material fact was true to the best of his knowledge
and belief or that such mis-statement of or suppression of a material fact are within the knowledge of the insurer:
Provided that in case of fraud, the onus of disproving lies upon the beneficiaries, in case the member is not alive.
Explanation – A person who solicits and negotiates a contract of insurance shall be deemed for the purpose of the formation
of the contract, to be the agent of the insurer.
(4) A policy of the life insurance may be called in question at any time within three years from the date of issuance of the policy
or the date of commencement of risk or the date of revival of the policy or the date of the rider to the policy, whichever is
later, on the ground that any statement of or suppression of a fact material to the expectancy of the life of the insured was
incorrectly made in the proposal or other document on the basis of which the policy was issued or revived or rider issued: