The Supreme Court held that the non-disclosure of additional policies did not amount to material suppression because the disclosed policy itself had a higher assured sum. The failure to disclose was deemed inconsequential to the insurer’s risk assessment.

Major Acts:

1. Constitution of India, 1950 (COI)

2. Consumer Protection Act, 1986 (CPA)

3. Insurance Regulatory and Development Authority (Protection of Policyholders' Interests) Regulations, 2002 (IRDA Regulations)

Subjects:
Claim Repudiation — Non-Disclosure — Material Suppression — Prudent Insurer — Substantial Disclosure — Existing Insurance Policies — Accident Death — Life Insurance Cover — Omission — Policy Benefits — Interest Award

Nature of Litigation:
Appeal against the order of the National Consumer Disputes Redressal Commission (NCDRC), New Delhi, dismissing the insurance claim for non-disclosure of existing policies.

Relief Sought:
Reinstatement of the insurance claim benefits under the life insurance policy issued by Exide Life Insurance Company Limited, along with interest.

Reason for Filing:
Claim was repudiated on grounds of suppression of material facts regarding existing insurance policies.

Prior Decisions:
a) State Commission — Dismissed the claim on 27 September, 2018.
b) National Commission — Affirmed dismissal on 28 May, 2019.

Issues:
Whether non-disclosure of certain existing insurance policies by the insured amounted to material suppression justifying repudiation of the claim.

Submissions/Arguments:
a) Appellant: Contended there was no material suppression and the omission was not significant enough to affect the insurer's risk assessment.
b) Respondent: Asserted that failure to disclose multiple existing policies constituted material suppression and justified repudiation.

Ratio:
The Court emphasized the principle of uberrima fides (utmost good faith) in insurance contracts but clarified that partial and substantial disclosure, in this case, provided enough information for a prudent insurer to assess the risk. The Court set aside the orders of the State and National Commissions, directed reinstatement of the insurance claim, and awarded 9% annual interest on the policy benefits from the due date until realization.