8 Court Rules Which Impacts Your Finances

Bangalore: Visiting courts, meeting lawyers, paying court fees and waiting to hear the final judgment are the things which never excite you, but there are some court rules which have a partial affect on your finances. Sakina Babwani from ET Bureau highlighted eight such Indian court ruling

1) An insurer must prove fraud to reject a claim

In case you face the trouble of your insurance claim getting rejected by your insurer 'due to suppression of fact’ which means any essential information intentional kept secret from the policy maker, then you must remember that as per the court ruling the insurance company cannot prove fraud on your part unless they prove that the information which you kept hidden had a major role in the case and that there was an element of fraud involved.

2) Guarantor liable to repay loan if debtor defaults

You need to think twice before you sign to become a guarantor for a bank loan because you will have to bear the entire liability of the loan amount incase the principal debtor dies or defaults or is enable to  repay the loan. You cannot even protest against the creditor if he chooses to directly approach you even before exploiting the assets of the principle debtor for recovering the loan amount.