Insurance Act, 1936
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Rights of holder of policy forfeited for non-payment of premium. |
67.—(1) Whenever a policy of industrial assurance becomes forfeited after the 31st day of December, 1937, by reason of the non-payment of a premium payable thereunder, the person entitled to such policy shall on such forfeiture become entitled to the free paid-up policy hereinafter mentioned and the industrial assurance company which issued such forfeited policy shall, subject to the provisions of this section, issue as soon as may be after such forfeiture to the person entitled to such policy a notice that such policy has been converted into a free paid-up policy assuring the payment, in accordance with the terms (other than payment of premiums) contained in such forfeited policy, of a sum calculated in accordance with the rules contained in the Third Schedule to this Act. | |
(2) The next preceding sub-section of this section shall not apply to a policy which is not an endowment or endowment assurance policy issued on the life of a child aged less than ten years unless, before such forfeiture occurs, premiums have been paid on such policy— | ||
(a) for not less than three years where such policy is issued after the commencement of this Part of this Act and assures the payment of money in connection with the death and funeral of a person other than the person effecting such policy and is either an endowment or endowment assurance policy for an original term of not less than sixteen years or is a policy for the whole term of life, or | ||
(b) for not less than two years where such policy is issued after the commencement of this Part of this Act and assures the payment of money in connection with the death and funeral of a person other than the person effecting such policy and is an endowment or endowment assurance policy for an original term of less than sixteen years, or | ||
(c) in any other case (but subject to the overriding limitation mentioned in this paragraph) for not less than the number of years stated in the second column of the Part of the Fourth Schedule to this Act applicable to such policy opposite the mention in the first column of the said Part of the said Schedule of the year in which such forfeiture occurs, subject to the overriding limitation that, where the minimum period of payment of premiums stated in the second column of Part II or of Part III of the said Schedule is greater than one-half of the original term of the policy, there shall be substituted for the number of years stated in the said column 2 in the said Part II or Part III (as the case may be) the number of years which represent and are one-half of the original term of the policy. | ||
(3) Whenever a policy of industrial assurance, which is an endowment or endowment assurance policy issued on the life of a child aged less than ten years, becomes forfeited after the 31st day of December, 1937, by reason of the non-payment of a premium payable thereunder, there may, at the option of the person entitled to such policy, be paid to such person, in lieu of the free paid-up policy provided by this section, the cash surrender value of such policy calculated in accordance with the rules contained in the Third Schedule to this Act. | ||
(4) Where the conditions of a policy of industrial assurance which becomes forfeited after the 31st day of December, 1937, by reason of the non-payment of a premium payable thereunder, confer on the person entitled to such policy rights in case of forfeiture thereof more favourable to such person than those conferred by this section, nothing in this section shall prevent or be construed as preventing any claim under those conditions instead of under this section. | ||
(5) Where any benefits which are granted by an industrial assurance company under policies of industrial assurance are revised in favour of or to confer further benefits on assured persons with retrospective effect in whole or in part in relation to any such policies which are in force at the date of such revision, the rights of the persons entitled to such policies shall not, in case of forfeiture thereof, be more favourable to such persons than such rights would have been if such benefits had been attached to such policies at the date of the issue of such policies. | ||
(6) Every premium receipt book issued after the commencement of this Part of this Act by an industrial assurance company shall have printed therein a notice setting forth the circumstances in which a policy of industrial assurance will become forfeited under this Part of this Act by reason of the non-payment of a premium payable thereunder and the rights under this Part of this Act in respect of such policy to a free paid-up policy or cash surrender value (as the case may require) in lieu of such forfeited policy. | ||
(7) Whenever a policy of industrial assurance becomes forfeited after the 31st day of December, 1937, by reason of the non-payment of a premium payable thereunder, it shall be the duty of the industrial assurance company which issued such policy to supply, on application being made to such assurance company by the person entitled to such policy, information concerning the amount of the free paid-up policy or cash surrender value (as the case may be) to which such person became entitled on such forfeiture. |