The Supreme Court on Saturday issued an important decision regarding life insurance and stated that the policy could not be terminated after two years of insurance due to any kind of documentation or misrepresentation. A three-member SC bench comprising Justice Umar Ata Bandial, Justice Munib Akhtar and Justice Sajjad Ali Shah announced the decision on an appeal filed against Peshawar High Court judgment. According to the case details, Abdul Rehman took out a life insurance policy with the appellant insurance company on or about 01.08.2002. The insured passed away on 07.02.2010 and the respondent, his legal heir, lodged a claim under the policy. That claim was rejected vide letter dated 15.04.2011. No specific reason, as such, was given as to why the claim was not accepted. The respondent commenced proceedings, on or about 25.11.2011, before the Insurance Tribunal. By judgment dated 07.06.2014, the Tribunal decreed the claim in the sum of Rs. 400,000/-, which was the insured amount. There was an appeal to the High Court, which was dismissed by means of the impugned judgment dated 09.05.2018. The appellant petitioned the Supreme Court, where leave to appeal was granted vide order dated 16.03.2020. A nine page judgment authored by Justice Munib Akhtar stated that the amount of insurance could not be withheld on the pretext of medical reasons on the death of the insured as the insurance company checks all records at the time of issuing the policy. The judgment stated that after two years, a life insurance policy could not be avoided on the ground of any falsity or inaccuracy in, or of, any statement made of the sort indicated in the provisions, unless the insurer is able to show that (a) the statement was on a material matter or suppressed facts that it was material to disclose ; (b) it was made fraudulently by the insured; and (c) the insured knew at the time of making the statement that it was false or suppressed facts that it was material to disclose.” “Among the record produced by the appellant at the trial were the statements made by the insured when the policy was taken out regarding his medical condition/history, and also the results of his medical examination (also carried out at that time). That examination was by a doctor of the appellant’s choice. The section of the record titled “Life Proposed Personal Statement of Health”, signed by the insured and dated 30.07.2002 contained a number of questions, which had to be answered by the applicant regarding his medical condition and health status,” read the judgment.