Report No. 66
8.18. Section 6 to be regarded as providing simpler mode of assignment.-
Dispensing with the various formalities required for the assignment of a policy under section 38 of the Insurance Act, section 6 provides, what was considered to be a simpler mode of assignment. The "assignment" need not be as elaborate and express as under the Insurance Act. The essence of the section lies in the words "expressed for the benefit of (the wife or children). If an intention to benefit the wife" or children is apparent that benefit is secured on the mere basis of the expression of the intention in the policy, and without the need for other formalities. That is the governing principle and object of the section.
To carry into effect this object, the section provides a machinery whereunder either the trustee appointed in this regard by the husband, or failing such appointment, the official trustee, is to receive the money on the policy from the insurance company. No formal trust is required. In this respect, the section dispenses with compliance with sections 5-6, Indian Trusts Act, 1882. Thus, the section not only overrides the provisions of section 38 of the Insurance Act, 1938, relating to the assignment of life policies, but also modifies the provisions of the Indian Trusts Act, 1882 in their application to the policies to which the section applies. By virtue of this section, what can be conveniently described as a "statutory trust" comes into being as we have already stated1.
1. Para. 8.17, supra.