The correct answer is: A. 1 year
Section 45 of the Insurance Act, 1938 states that an insurer can reject a claim after one year of taking a policy if the insured has not made a claim during that time. This is known as the “one-year rule.” The one-year rule is designed to protect insurers from fraudulent claims. It also helps to ensure that insurers have enough time to investigate claims and make sure that they are valid.
The one-year rule does not apply to all types of insurance policies. For example, it does not apply to life insurance policies. Additionally, the one-year rule can be waived if the insured can show that there was a good reason why they did not make a claim within one year.
If you are considering taking out an insurance policy, it is important to be aware of the one-year rule. This will help you to make sure that you are protected in the event of a claim.
Here is a brief explanation of each option:
- Option A: 1 year. This is the correct answer. Section 45 of the Insurance Act, 1938 states that an insurer can reject a claim after one year of taking a policy if the insured has not made a claim during that time.
- Option B: 3 years. This is not the correct answer. Section 45 of the Insurance Act, 1938 does not state that an insurer can reject a claim after three years of taking a policy.
- Option C: 5 years. This is not the correct answer. Section 45 of the Insurance Act, 1938 does not state that an insurer can reject a claim after five years of taking a policy.
- Option D: 7 years. This is not the correct answer. Section 45 of the Insurance Act, 1938 does not state that an insurer can reject a claim after seven years of taking a policy.