Her husband, Saravanan, passed away during the COVID-19 lockdown in September 2020 after contracting viral pneumonia. He had a life insurance policy, yet when his widow filed a claim for ₹2.98 lakh, the insurance company flatly rejected it.  
  
Saravanan had failed to disclose his diabetes and high blood pressure on the application form.  
  
Gowri fought the rejection all the way to the Madras High Court, arguing that her husband died of Pneumonia, an entirely unrelated illness, and therefore, hiding his blood pressure shouldn't matter, but the Court upheld the rejection.   
  
At the heart of every insurance contract is a foundational principle of insurance law: Utmost Good Faith (Uberrimae Fidei).   
  
Insurance requires both parties to be honest, because the insurer cannot physically examine every aspect of your life before issuing a policy, they rely entirely on the answers you provide in the proposal form. When Saravanan applied for his Shriram Life Insurance policy, the form asked two very specific questions:  
  
14.K: Have you ever suffered from any ailments?  
14.K.4: Diabetes/High or Low BP/Stroke, etc.?  
  
To both questions, Saravanan answered NO  
  
Viral pneumonia was listed as the primary cause of death, but the death certificate noted high BP and Type 2 DM as secondary causes.   
  
As the Supreme Court has previously ruled, any information asked for in a proposal form is considered material for the purpose of entering into the contract, and by hiding his diabetes and hypertension, Saravanan altered the risk the insurer agreed to take.   
  
Many people assume that if the agent ticks NO without asking them, the insurer can't penalize them later, but you cannot escape the consequences by claiming you didn't understand the form or that the agent filled it out incorrectly.  
  
Yes, declaring a pre-existing disease might increase your premium or add a waiting period, but paying a slightly higher premium for a guaranteed payout is infinitely better than paying years of lower premiums only to leave your family with nothing when they need it most.  
  
Insurance is a promise to pay, but that promise is conditional upon your promise of truth. Honor your side of the bargain, and the law will ensure the insurer honors theirs.



S. Gowri, a widow fighting for her family's survival, learnt the importance of disclosures in a tough way