Report No. 82

3.3. Scope of near relatives.-

The next question to be considered, then is-who are the persons who can be appropriately regarded as within the range of those deserving special protection under the category of "near relatives" It appears to us that having regard to conditions in India, the law ought to recognise the special position of parents and children as well as of spouses. By and large, they are the persons who would aspect to be provided for. Life insurance, in its essence, is designed to be a cushion against unexpected financial disasters.

A contract of insurance is a contract to pay on the happening of some event and is generally intended to cover a risk. The risk in this case is of death-though the contract carries the euphemistic appellation of "Life insurance". In the case of parents, spouses and children, the risk factor is the most prominent, and death is likely to have the deepest impact on their personal lives. All this tends to go in favour of adopting a different approach as to the effect of nomination from that adopted by the majority of the High Courts under the present law, as regards the relatives mentioned above.