Man invests millions in insurance, can only cash out at 105 years old. When requesting to cancel the policy, it was denied. Court: The insurance company committed fraud, contract is revoked.

Miyun Court recently heard a dispute over policy cancellation.

In recent years, Mr. Li purchased four wealth management insurance policies through a salesperson from a Beijing-based insurance company. All of these policies were “maturity withdrawal” types, allowing for flexible access to funds, which built a strong trust. On June 30, 2024, the salesperson presented Mr. Li with a large policy.

Under the salesperson’s urging, Mr. Li signed a contract titled “Certain Longevity Insurance Product Plan” and paid the first premium of 2 million yuan on the same day. However, continuous funeral arrangements and laborious efforts took a toll on his health, and he was hospitalized. After recovering and reviewing the thick insurance contract, a clause shocked him.

The contract clearly states that the 10 million yuan principal can only be withdrawn when Mr. Li reaches 105 years old, and after five years, he can only receive a small dividend annually.

After multiple unsuccessful negotiations, Mr. Li filed a lawsuit against the Beijing-based insurance company.

Based on the evidence in the case, the court held that the insurance company’s salesperson, despite knowing that Mr. Li’s insurance needs were short-term wealth management with principal withdrawal after five years, deliberately concealed the core clause, leading Mr. Li to hold a mistaken understanding and sign the contract. This meets the criteria for fraud.

At the same time, the court found that Mr. Li’s lawsuit was filed within the one-year statutory period for rescission under the Civil Code. Considering all the evidence, Miyun Court ultimately ruled that the insurance company’s conduct constituted fraud, supported the plaintiff’s claim, and canceled the insurance contract. The court also ordered the insurance company to refund Mr. Li 2,000,010 yuan in insurance premiums.

Editor: October

Reviewer: Ling Shan

【Source: Comprehensive Legal Times】

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