Some policyholders may work on their insurance application or omit a dangerous hobby in order to obtain approval. Non-disclosure fraud is the act of lying on an insurance application.
The Insurance Contracts Act of 1984 mandated the disclosure of all information relevant to the insurer’s final decisions.
The protection supplier has restorative moves it might make assuming it learns the candidate lied on the application for inclusion.
The insurer will look over medical records and previous insurance coverage during the underwriting process, looking for injuries caused by risky activities.
The insurer can either deny the application or modify the policy and the amount paid for the premium to reflect the risks covered.
After writing a policy, the insurer may limit the benefit payment for death or dismemberment or even cancel the insurance policy as a whole if it learns of risky businesses that were not disclosed.
