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Report No. 82

Effect of Nomination under Section 39, Insurance Act, 1938

Chapter 1


1.1. Scope of the Report.-

The subject matter of this Report concerns a single section-section 39 of the Insurance Act, 1938,1 which relates to the mode and effect of nomination in regard to a life insurance policy.2 While the rest of the Insurance Act is mainly of a technical nature and primarily concerns those who carry on the business of insurance this particular section is of vital interest to every citizen who takes out life insurance. Certain problems3 that have arisen in the interpretation of the section and the injustice4 which seems to result from the present position, constitute the primary justification for taking up this subject, namely, the legal effect of a nomination made in regard to a life insurance policy.

1. The Act will be hereafter referred to as the "Insurance Act".

2. Para. 2.1, infra.

3. Chapter 3, infra.

4. Chapter 3, infra.

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