Report No. 66
VII. Points for Consideration Concerning Section 6
8.20. Points of detail.-
After this discussion of the significance of section 6, we shall proceed to examine certain matters concerning the section which require consideration. It should be pointed out, that the section has led to numerous points of controversy. Certain other points also arise out of the section. It will be convenient to enumerate important points which require consideration, either because of these controversies or otherwise:-
(a) Does the section apply to endowment policies?1
(b) What is the meaning of the words "expressed on the face of it" in the section?2
(c) (i) What formula should be used in the policy to attract the section?3
(ii) What is the meaning of the words "for the benefit of his wife or of his wife and children or any of them", which occur in the section; can there be a policy for the benefit of children only?4
(d) What is the effect of a nomination made under section 39, Insurance Act, 1938?5
(e) If a nomination under section 39, Insurance Act, brings a case within this section, can the nomination be cancelled?6
(f) Can there be a contingent provision under this section?7
(g) Can the statutory trust under this section be cancelled?8
(h) Who can sue under this section?9
(i) Can the widow for whose benefit the policy is expressed to be made, sue in her own name, without resorting to the official trustee?10
(j) Relationship of this section with section 39(7), Insurance Act-What happens if there is a trust and also a nomination, in respect of the same policy?11
(k) Can a trust be created under the section after the policy is issued?12
(1) Verbal change needed in respect of the "deeming" provision13 as to creation of trust.
(m) Rights of creditors14 when a trust is created.
(n) Interpretation of the words referring to "object".15 We shall deal with these points sereatim.
1. Paras. 8.21 and 8.22.
2. Paras. 8.23 to 8.28.
3. Paras. 8.29 and 8.30.
4. Paras. 8.31 to 8.33.
5. Paras. 8.34 to 8.42.
6. Para. 8.43.
7. Paras. 8.44 to 8.46.
8. Paras. 8.47 and 8.48.
9. Paras. 8.49 and 8.50.
10. Paras. 8.51 and 8.52.
11. Paras. 8.53 and 8.54.
12. Para. 8.55.
13. Para. 8.56.
14. Para. 8.57.
15. Para. 8.58.