Repudiation


Repudiation refers to the right of an insurer to refuse admittance of the claim by the insured. This is possible under the following different cases.

i) When the claims for losses are caused by un-insured perils or perils specifically excluded from the scope of the policy

ii) When the claims which are other wise admissible under the policy, become refused due to the violation or non- compliance by the insured of some of the policy conditions.

iii) When false statements are made by the insured while applying for insurance.

iv) When the insured fails to disclose relevant facts while applying for insurance

v) When the insured fails to comply with the terms of the agreement.

vi) When the insured makes an untrue statement to the insurer to get the compensation for loss

vii)When the insured makes unreasonable delay in reporting the incident leading to a claim.

Thus, in the above cases, the insurer may repudiate the theclaims of the insured.

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