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Report No. 82

6.10. Recommendation to revise section 39, Insurance Act, 1938 by inserting new sub-sections.-

In the light of the above discussion, we recommend that in section 39 of the Insurance Act,1 the following new sub-sections should be inserted after sub-section (6):

"(6A) Subject to the other provision of this section, where the holder of a policy of life insurance on his own life nomination his parents, or his spouse, or his children, or his spouse and children, or any of them, the nominee or nominees shall be beneficially entitled to the amount payable by the insurer to him or them under sub¬section (6), unless it is proved that the holder of the policy, having regard to the nature of his title to the policy, could not have conferred any such beneficial title on the nominee.

(6B) Subject as aforesaid, where the nominee or if there are more nominees than one, a nominees or nominees, to whom sub-section (6A) applies, die after the person whose life is insured but before the amount secured by the policy is paid, the amount secured by the policy, or so much of the amount secured by the policy as represents the share of the nominee or nominees so dying (as the case may be), shall be payable to the heirs or legal representation of the nominee or nominees or the holder of a succession certificate, as the case may be, and shall be beneficially entitled to such amount.2

(6C) Nothing in sub-sections (6A) and (6B) shall operate to destroy or impede the right of any creditor to the paid out of the proceeds of any policy of life insurance. 3-4

(6D) The provisions of sub-section (6B), (6B) and (6C), shall apply to all policies of life insurance maturing for payment after the commencement of the Insurance (Amendment) Act,......"

1. For the present section 39, see para. 2.1, supra.

2. Cf the wording of section 39(5), Insurance Act, 1938.

3. Contrast Married Woman's Property Act, 1874, section 8(1), last para.

4. As to testamentary dispositions, see section 39(2), Insurance Act, 1938.

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

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