Non-disclosure of pre-existing conditions is one of the most common reasons for life insurance claim rejections. However, consumer forums have repeatedly clarified that claim rejections in such cases must be strictly in accordance with legal provisions and must be supported by solid legal evidence. Let's understand this issue in detail. Legal Framework: Good Faith and Section 45 Insurance contracts are based on the principle of "utmost good faith." Policyholders are required to disclose all material facts about their health, including known illnesses. However, Section 45 of the Insurance Act, 1938, limits the ability of an insurance company to reject a claim. In Life Insurance Corporation of India v. P. Sindhu Nair (2024), the Odisha State Commission stated, "Section 45 of the Insurance Act clearly states that a claim cannot be rejected on any other ground after two years from the date of commencement of the policy."