First is that LIC is missing an important ingredient which is required for the application of the Section 45 mandating that the person who is applying for a policy “knew at the time” of applying for Insurance Policy, that he is suffering from a disease because only then it will be called a fraud.
Contracts are sacrosanct and that is the reason why we keep so much money in the Banks even though it offers dirt cheap interest rates (currently Banks only offer around 7 % of Fixed Deposits, that too if you deposit money for more than One year, which is not even enough to beat inflation let alone giving some savings to a customer) therefore it is the duty of the Banks also to deal with the Customers with utmost honesty and diligence.
ue to these abovementioned reasons the Insured or Policy Holder pays timely premiums in the hope of saving for a rainy day. But if Insurance Company denies the payment of your medical bills or denies money to a family after the death of the Policy Holder, then what are the remedies available to him or his family members.
Therefore an attachment or freezing of your Bank Account can paralyze your finances just within a day as you lose access to the precious savings which you might have saved over many years for a rainy day.
