Mithoolal Nayak vs Life Insurance Corporation Of India on 15 January, 1962
39. The law has been settled by the Hon'ble Supreme Court in a number of
judgments that the contract of insurance is a contract of Uberrima fides and the
parties are bound to disclose the material facts to each other. It was held by the
Hon'ble Supreme Court in the judgment reported as Mithoolal Nayak v. Life
Insurance Corporation of India, AIR 1962 Supreme Court 814 that if the life
insured had suppressed the material facts with fraudulent intention then the
insurer would be at liberty to repudiate the insurance claim.