P.J. CHACKO vs CHAIRMAN, L.I.C.

The Supreme Court addressed the application of Section 45 of the Insurance Act, 1938, concerning the repudiation of an insurance policy due to non-disclosure of material facts. The Court held that the Division Bench of the High Court erred in setting aside the trial court's decree, which found that the cause of death (polyneuritis) was unrelated to the insured's previous operation (Adenoma Thyroid). The Court emphasized that the non-disclosure did not materially affect the risk, thus ruling in favor of the appellants and reinstating the trial court's judgment.