How-To · Insurance Claims · Last verified October 2026

How to Claim Against a Repudiated Insurance Policy (2026)

Updated for 2026 · Claw Editorial

Repudiation is the formal word for an insurer refusing to pay a claim. It is common in life insurance death claims and large health and general claims, and the usual grounds are non-disclosure, suppression of a material fact, breach of a condition, or an exclusion. A repudiation letter is not the last word: it can be challenged, and for life policies the law itself limits when an insurer may repudiate at all. This guide, for policyholders, nominees and families, explains what repudiation means, the Section 45 three year rule that protects life policies, and the step by step route to claim against a repudiation. It is general information, not legal advice. Last verified October 2026.

Quick reference

Repudiation: the insurer formally denying a claim, in writing, with reasons; it is not the last word.
Main ground: non-disclosure or suppression; the insurer must prove the fact was material and knowingly withheld.
Section 45: a life policy cannot be called in question after three years from issue, revival or last change.
Amendment: the period was raised from two to three years by the Insurance Laws (Amendment) Act, 2015.
Escalate: insurer grievance officer, then IRDAI, then the free Insurance Ombudsman within one year, then consumer court.

01The short answer

To claim against a repudiated policy:

Get the repudiation in writing and find the exact ground and clause.
For a life policy, check Section 45: a policy generally cannot be questioned after three years.
Answer the insurer grievance officer point by point, with documents.
Escalate to IRDAI, then the free Insurance Ombudsman within one year, and to a consumer commission for larger claims or compensation.

Repudiation on non-disclosure is the insurer most common ground, and it is also the most contestable, because the insurer must prove the withheld fact was material and deliberately suppressed. The three year rule gives life policyholders an added shield.

02What repudiation means

Repudiation is an insurer formally rejecting a claim and declining to pay. It is different from a partial payment or a deduction: repudiation denies the claim outright. It must be communicated in writing with reasons, so the first thing to secure is the repudiation letter itself.

The word is used across life, health and general insurance, but it carries extra weight in life insurance death claims, where the nominee is left to fight a denial after the policyholder has died. The ground stated in the letter, and the date the policy began, decide how strong the repudiation is.

03Common grounds for repudiation

Insurers repudiate on a familiar set of grounds:

Non-disclosure or suppression of a material fact, such as an existing illness, when the policy was bought.
Misrepresentation: a false statement in the proposal form.
Breach of a policy condition, for example on intimation or on the insured activity.
Exclusion: the cause of the claim falls within a clause the policy does not cover.

Non-disclosure is the leading ground. To rely on it, the insurer must show that the fact was material to the risk and that it was knowingly withheld. A fact that was never asked, or an innocent omission, is weak ground for repudiation.

04Section 45: the three year rule for life policies

For life insurance, Section 45 of the Insurance Act, 1938 is the policyholder strongest protection. It says that no life insurance policy can be called in question after three years from the date of issue, the date risk started, the date of revival, or the date of a rider, whichever is later. The period was raised from two years to three by the Insurance Laws (Amendment) Act, 2015.

In plain terms, once a life policy has run beyond three years, the insurer cannot repudiate it on grounds of misstatement or non-disclosure. Within the three years, the insurer may repudiate for fraud or material misstatement, but it must communicate the grounds and the materials in writing to the insured or the nominee, and the burden to prove suppression rests on the insurer.

Section 45 has detailed conditions and exceptions; check the current text and the specific clause invoked before acting.

undefined

05Step 1: answer the insurer

Reply to the insurer Grievance Redressal Officer in writing, taking the stated ground apart point by point. If it alleges non-disclosure, attach the proposal form and show what was asked and what was declared. If it cites an exclusion, read the clause and show your claim does not fit it. For a life death claim beyond three years, cite Section 45 squarely.

Keep the letter factual, attach copies and keep the acknowledgement. A well documented reply resolves many repudiations without an outside forum, and it builds the record you will need if you must escalate.

06Step 2: IRDAI, Ombudsman and consumer forum

If the insurer holds its repudiation, escalate. Lodge the grievance with IRDAI through the Bima Bharosa portal. If still unresolved, approach the Insurance Ombudsman, a free forum under the Insurance Ombudsman Rules, 2017, for personal insurance claims up to Rs 50 lakh, within one year of the repudiation. An Ombudsman award in your favour binds the insurer.

For claims above the Ombudsman limit, or where you want compensation for the hardship, file before a consumer commission: a wrongful repudiation is a deficiency in service under the Consumer Protection Act, 2019. For the forum step by step, see how to file an Insurance Ombudsman complaint and the general ladder in how to dispute a rejected insurance claim. A formal legal notice to the insurer often precedes a consumer case.

07Evidence that matters

Challenging a repudiation turns on documents:

The repudiation letter and the policy document, with the exact clause relied on.
The proposal form, to answer non-disclosure and misrepresentation grounds.
Medical records or the incident record, including dates of first diagnosis for a health or life claim.
Proof of the policy dates: issue, revival and premium payment, which fix the Section 45 clock for a life policy.

For a life death claim, the single most powerful point is often the passage of three years, because it removes the misstatement ground entirely. Assemble the file once and the same bundle serves the insurer, the Ombudsman and any court.

08Where Claw fits

Claw is an all-in-one legaltech platform for Indian advocates, law firms, and corporate legal teams, combining AI-based case search, an AI legal assistant (Legal GPT), case management, and compliance automation across all Indian courts and tribunals.

Drafting the reply and running the dispute is work for you and, where needed, your adviser; Claw does not file it for you. Where Claw helps is research and tracking once the matter reaches a forum. Claw tracks consumer commission matters, Insurance Ombudsman led disputes and the resulting appeals to the State and National Commissions, the High Courts and the Supreme Court, across 9,102 courts, benches and forums, with alerts and monitoring. Its Legal GPT researches across 30 crore+ judgments, with Supreme Court decisions from 1950 and High Court decisions from 1990, so an adviser can see how forums have read Section 45 and tested repudiation on non-disclosure. Results return in under 5 seconds, and Claw does not train its AI models on your documents. To check an insurer existing litigation, run a case search across Indian courts by company name. A clean result means nothing was found on the forums and date searched, and this is general information, not legal advice.

09Sources and further reading

India Code (Insurance Act, 1938, Section 45): indiacode.nic.in
IRDAI Bima Bharosa (grievance portal): bimabharosa.irdai.gov.in
Council for Insurance Ombudsmen: cioins.co.in
Claw: clawlaw.in

This guide is general information, not legal advice. Section 45 and policy terms turn on your facts; take advice before a contested repudiation.

10Frequently asked questions

What does it mean when an insurer repudiates a policy?

Repudiation means the insurer formally rejects the claim and declines to pay, usually citing non-disclosure, suppression of a material fact, breach of a policy condition, or an exclusion. It must be communicated in writing with reasons. Repudiation is different from a partial payment or a deduction, because it denies the claim outright. The first step is to get the repudiation letter and identify the exact ground and clause relied on.

What is the three year rule under Section 45 of the Insurance Act?

Section 45 of the Insurance Act, 1938 says a life insurance policy cannot be called in question after three years from the date of issue, the start of risk, revival, or a rider, whichever is later. The period was raised from two to three years by the Insurance Laws (Amendment) Act, 2015. Once a life policy crosses three years, the insurer cannot repudiate for misstatement or non-disclosure, which makes the passage of three years a powerful point in a death claim.

Can a life insurance death claim be repudiated after three years?

Generally no, on grounds of misstatement or non-disclosure. Section 45 bars an insurer from calling a life policy in question after three years from issue, revival or the last change. Within the three years, the insurer may repudiate for fraud or material misstatement, but it must communicate the grounds and materials in writing to the nominee, and it carries the burden of proving the suppression. The specific clause invoked and the exact dates should be checked.

How do I challenge a repudiated insurance claim?

Reply to the insurer Grievance Redressal Officer in writing, answering the stated ground point by point with documents such as the proposal form and medical records. If unresolved, lodge the grievance with IRDAI through the Bima Bharosa portal, then approach the free Insurance Ombudsman within one year of the repudiation, for personal claims up to Rs 50 lakh. For larger claims or compensation, file before a consumer commission, as a wrongful repudiation is a deficiency in service.

Is repudiation for non-disclosure always valid?

No. Non-disclosure is the insurer leading ground and also the most contestable. To rely on it the insurer must show the withheld fact was material to the risk and was knowingly suppressed. A fact that was never asked in the proposal form, or an innocent omission, is weak ground. Your proposal form, showing exactly what you were asked and what you declared, is the key document to defeat a non-disclosure repudiation.