Tap to Call

What is a material fact in an insurance contract?

vector image of people holding insurance papers - material fact in an insurance contract

“A material fact under the insurance contract is -any situation or information which can increase the frequency and/or severity of loss which is covered under that particular insurance contract.”

For example:

A Dog bite could be a material fact for a health insurance contract which has to declared by the proposer to the insurance company. But this is not a material fact in case of buying home insurance.

Secondly, just a declaration of fact is not enough to satisfy the condition of material fact. It is also important to be accurate and complete.

In short, any miss-representation or non-disclosure of even a part of the information is considered a violation of the material fact clause.

It’s always advisable to take the help of insurance brokers to avoid anything which can disqualify your claim in the future. The good part is, it will not cost you anything.

Susheel Agarwal

Susheel Agarwal

Susheel is a certified Happiness Coach, which enables him to help organizations develop healthy and happy workplaces. Years of extensive in-depth research by interacting with various leaders of happy & not so happy organizations, attending several Happiness and Leadership programs along with his own authentic experiences, Susheel has been successful in establishing a happy workplace. He currently works as a Thought Leader and a Passionate Coach, educating corporate leaders to do the same.

Leave a Reply

Your email address will not be published. Required fields are marked *