Report No. 82
2.9. Later Allahabad Case.-
Besides the Allahabad case of 1962 mentioned above, the Allahabad High Court1 had in 1972 occasion to deal with the effect of nomination vis-à-vis the creditors of the deceased. After considering the provisions of sections 38 and 39 of the Insurance Act, the High Court held:
1. Raja Ram v. Mata Prasad, AIR 1973 All 167 (169), para. 15 (FB).
The result of our survey of the material provision is:
(1) The policy holder continues to hold (an) interest in the policy till the moment of his death;
(2) The nominee under section 39 acquires no interest in the policy in the lifetime of the policy holder;
(3) The benefit secured by the policy forms part of the estate of the deceased policy holder, so as to be available to the creditors. As it is part of his estate, his creditors can realise their loans from the money paid to the nominee. He will be the 'legal representative' of the deceased policy holder."