List out the circumstances under which the life insurer may apply, to pay the amount into the court to obtain a satisfactory discharge for the payment of amount payable under the terms of the policy or otherwise.
CS Professional · Insurance - Law and Practice · PYQS · December 2021
List out the circumstances under which the life insurer may apply, to pay the amount into the court to obtain a satisfactory discharge for the payment of amount payable under the terms of the policy or otherwise.
Answer & Explanation:
Where in respect of any policy of life insurance maturing for payment an insurer is of opinion that by reason of conflicting claims to or insufficiency of proof of title to the amount secured thereby or for any other adequate reason it is impossible otherwise for the insurer to obtain a satisfactory discharge for the payment of such amount, the insurer may, apply to pay the amount into the Court within the jurisdiction of which is situated the place at which such amount is payable under the terms of the policy or otherwise. This happens under the following circumstances: Absence of nomination by the policyholder; Registration of an assignment; Multiple claimants with conflicting claims with insufficient proof of title; Where the claimant has approached the Court for settlement of property disputes including insurance claims; Circumstances where it is impossible for the Insurer to obtain a satisfactory discharge from the claimant.
Topics: Life Insurance
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