A life insurance death claim was repudiated. Section 45 may be on your side.
A repudiated death claim is not the last word — the law puts real limits on when an insurer can refuse. Here's what those limits are, and exactly how to challenge the repudiation, free.
Reviewed by the BimaHaq Insurance Grievance Desk — BimaHaq's in-house insurance-grievance team — specialists in IRDAI grievance redressal, the Insurance Ombudsman process, and policyholder rights in India. · Last reviewed 2026-07-11
Under Section 45 of the Insurance Act 1938, once a life policy has run for three years — counted from the latest of its issuance, the start of risk, its revival, or a rider — it cannot be called in question on any ground whatsoever, including fraud. Within those three years the insurer can repudiate, but it carries the burden: it must put its grounds and the supporting material to you in writing, prove any misstatement was material, and if the repudiation is for a non-fraud misstatement it must refund every premium paid, within 90 days.
Why insurers reject on this ground
Death claims are usually repudiated for alleged non-disclosure of a pre-existing condition in the proposal form, for the suicide clause, for a policy said to have lapsed, or for late intimation of the death.
When you can challenge it
A repudiation has to clear high bars. After the three-year window the policy is incontestable on any ground at all, so first check the dates — but note a revival restarts a fresh three-year clock. Within three years, for a non-fraud misstatement the onus is on the insurer to show the undisclosed fact had a direct bearing on the risk and that it would not have issued the policy had it known; for fraud it must prove a deliberate intent to deceive, and mere silence is not fraud unless there was a duty to disclose. Where the insurer's own agent filled in the proposal form, courts have often treated a fraud plea as weakened. A suicide within the first 12 months is not a total forfeiture — the nominee still receives at least 80% of premiums paid or the surrender value (the fund value for a ULIP); and if death fell within the grace period, the policy was in force. The 2024 rules also bar rejecting or closing a claim merely for missing documents or delayed intimation.
How to fight this rejection
Get the repudiation letter with its grounds and material
Within three years the insurer must communicate, in writing, both the grounds of repudiation and the material it relies on. A bare letter citing 'non-disclosure' without identifying the proposal answer and the record that contradicts it is procedurally deficient — ask for the material.
Check the three-year incontestability clock
Count three years from the latest of policy issuance, commencement of risk, revival, or rider. Beyond that, the policy cannot be questioned on any ground whatsoever — including fraud. A recent revival, though, opens a fresh three-year window, which is the insurer's usual counter.
Test materiality and the fraud/misstatement line
For a non-fraud misstatement the insurer must prove the fact was material to the risk; an unrelated condition generally cannot sustain repudiation. If the repudiation is for misstatement and not fraud, all premiums paid must be refunded within 90 days — a fraud label that quietly refunds premiums is internally inconsistent.
Raise a written grievance with the insurer's GRO
Send a dated grievance to the insurer's Grievance Redressal Officer setting out why the rejection is wrong. The insurer must acknowledge it immediately and resolve it within 14 days.
Escalate to IRDAI on Bima Bharosa
If it isn't resolved in time or the reply is unsatisfactory, register the complaint on IRDAI's Bima Bharosa portal.
Take it to the Insurance Ombudsman
Free, binding on the insurer, and open to claims up to ₹50 lakh — file within one year of the insurer's rejection or final reply.
Common questions
Can an insurer reject a death claim after three years?
No. Under Section 45(1) of the Insurance Act 1938, once three years have passed from the latest of the policy's issuance, commencement of risk, revival, or rider, the policy cannot be called in question on any ground whatsoever — even alleged fraud. But a revival restarts the three-year clock from the revival date.
Who receives the death claim — the nominee or the legal heirs?
If the nominee is a parent, spouse, or child, they are a 'beneficial nominee' under Section 39(7) (inserted by the 2015 amendment) and are beneficially entitled to keep the money. Other nominees generally receive it on behalf of the legal heirs.
Does suicide void a life insurance policy?
Only partly, and only in the first 12 months from the start of risk or revival. Even then the nominee is entitled to at least 80% of the premiums paid or the surrender value, whichever is higher (the fund value for a ULIP). Suicide after 12 months is covered under the standard clause.
The policy had lapsed — is the claim gone?
Not necessarily. If death occurred within the grace period (15 days for monthly mode, 30 days otherwise) the policy was in force and the claim is payable. A lapsed policy that had acquired paid-up value still pays a reduced death benefit under its own terms.
If the claim is validly repudiated for misstatement, do I get anything?
Yes. Where the repudiation is for a non-fraud misstatement, the insurer must refund all premiums collected on the policy till the date of repudiation, within 90 days of the repudiation (Section 45(4)).
See the full escalation ladder for a rejected claim, or use a free complaint-letter template.
This guide is general information about the insurance-grievance process in India, not legal advice, and figures (timelines, monetary limits, jurisdiction) can change — verify against the official sources linked above before you rely on them.