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Report No. 82

II. Friendly Societies in English Law

5.3. Friendly societies.-

In the system of limited insurance taken out with friendly societies (as regulated by the Friendly Societies Act, 1974)1, nomination has a wider effect. The friendly society must, on receiving satisfactory proof of the death of the nominator, pay to the nominee the amount due to the deceased member, subject to a certain prescribed limit. "There is a prima facie presumption that the nominee is intended to take benefit, but, it is a question dependent on evidence, and the members' personal representative may, in a proper case, demand re-payment from the nominee, subject to sums expended by the nominee for medical fees and funeral expenses in respect of the nominator."2

1. Section 66(1) and section 67, Friendly Societies Act, 1974 (Ch 6); Halsbury's, 4th Edn., Vol. 19, p. 143, para. 366 and pp. 146-146, para. 172.

2. Halsbury's, 4th Edn., Vol. 19, p. 146, para. 172.

Effect of Nomination under Section 39 of the Insurance Act, 1938 Back

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