The three-year clause in a life insurance policy under Section 45 of the Insurance Act of 1938 (amended in 2015). According to the provision, insurance companies cannot question a life insurance policy after three years. The insurer has no right to reject a life insurance claim on the grounds of misrepresentation or suppression of material facts after three years from the date the policy was in force or from the date of policy reinstatement.
An insurance company can reject the claim of a life insurance policy on grounds of misrepresentation or suppression of material facts during the first three years. The three years is calculated from the date of issue of the policy, date of commencement of risk, date of revival of the policy or date of the rider# to the policy, whichever is later. No claim can be rejected after three years, except in cases where the life insured is found guilty of criminal activity or fraud when submitting claim documents.