Report No. 66

8.57. Point (m)-Right of creditors-Amendment recommended.-

The next point concerns the rights of creditors. We have noted1 that under section 6, creditors would be entitled, in case of fraud, to a right against the (entire) proceeds of any such policy, though the word "entire" is not used. Under the English Act, the creditors are entitled to receive, out of the moneys payable under the Policy, a sum equal to the premiums so paid. Therefore, in England the creditors would be entitled to a lesser amount than they would get in India. We think that the English provision should be followed, being fair to both the creditors and the beneficiaries, and we recommend accordingly.

1. Para. 8.12, supra.