TMI Blog1956 (1) TMI 23X X X X Extracts X X X X X X X X Extracts X X X X ..... ited under two different Life Insurance Policies for the value of ₹ 25.000/- under each of such Policies. In each of such Policies Nathmull Periwal nominated his widow and son-in-law to receive the insurance moneys. The terms of the nomination in each Policy were as follows : I Nathmull Periwal, the Holder of Policy No. 558347 do hereby nominate my wife Shrimati Rama Devi Periwal, aged 52 years, and my son-in-law Sri Dhanpatrai Panchisia, the survivor or survivors, as the persons to receive the moneys under the above Policy in the event of my prior death. I request the National Insurance Company Limited to note the said nomination and send me a written acknowledgment thereof. Dated at Calcutta this 31st day of March, 1953. Sd/- Nathmull Periwal. The nomination in the other Policy was exactly in the same terms, only the Policy number being different. The plaintiff decree-holder in execution of his decree obtained on 17-6-1955 a prohibitory order of attachment restraining the applicant from receiving the insurance moneys under the said Policies. 3. The whole contention of the applicant is that after the death of the assured Nathmull Periwal the moneys due un ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ther the plaintiff was entitled to enforce her claim against the Insurance Society. If she was, then there could be no question that the money due under the policy belonged to her and did not form part of the assets of the estate of the deceased. The plaintiff was no doubt the nominee of the deceased; but she was no party to the contract between the deceased and the Insurance Society. The learned Counsel for the applicant also relied on the observations of Lord Esher M.R., in - Cleaver v. Mutual Reserve Fund Life Association' (1892) 1 QB 147 (B) which was quoted at p. 521 of that report of the Calcutta decision and which observations were in these terms : The contract is with the husband and with nobody else. The wife is no party to it. Apart from statute the right to sue on such a contract would clearly pass to the legal personal representatives of the husband*** I think that apart from any Statute, no interest would have passed to the wife by reason merely of her being named in the Policy. 6. These observations also are prima facie against the applicant. This decision being prior to the Insurance Act, does not in my view assist the applicant's case in any way. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... argument of Mr. Roy, Section 39(6), Insurance Act clothes the nominee with the title to own the money payable under the Policy. The language of the section is the amount secured by the Policy shall be payable to such survivor or survivors. In other words, while formerly perhaps a nominee qua nominee could not demand from the Insurance Company such moneys on the ground that under the Common Law the nominee was no party to the contract of insurance and the Insurance Company had to enquire into the title of the representative of the estate of the assured, (sic). The Statute, therefore, can easily be explained as providing an expeditious discharge of the liability of the Insurance Company by providing that so far as the Insurance Company is concerned, the money is payable to the nominee and it need not look to the legal representatives of the assured. In other words, all that Sub-section (6) of Section 39, Insurance Act does is to confer on the nominee the right to receive the insurance money as between such nominee and the Insurance Company, but it does not provide for the title or ownership of that money in general. 9. The actual terms of the nomination are also in my opi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... stly Sub-section (5) provides that in case a nominee or nominees die before the policy matures for payment the amount under the policy is payable to the policy-holder or his heirs or legal representatives or the holder of a succession certificate. My analysis, therefore, of Sub-sections (1), (2), (4) and (5) of Section 39, Insurance Act, 1938 leads me to the conclusion that such nomination does not affect the title to the money secured by the policy but only provides a mode of payment to a particular person who is the nominee, and that in spite of such nomination the policy-holder retains complete power of disposition over such insurance moneys which he can exercise either by transfer or assignment or further endorsement or will. And in any event when such nominees die the money becomes payable to the policy-holder or his legal representatives or heirs. This last provision indicates that the moneys due under the policy continue to belong to the estate of the assured. If the nominees acquire any title to the money by the nomination, then the death of the nominees would not divert the moneys under the policy to the policy-holder or his heirs or legal representatives but to the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he benefit of the wife within the meaning of Section 6, Married Women's Property Act. The terms of nomination here make the nomination simpliciter which comes under Sub-section (6) of Section 39, Insurance Act. This is not the end of the matter because the proviso to Sub-section (7) of Section 39 of the Act takes it beyond doubt. Thai proviso states that where a nomination in favour of the wife is expressed whether or not on the face of the policy as being made under this section, Section 6, Married Women's Property Act shall not be deemed to apply or to have applied to the policy. (That means that the policy-holder can elect to I come either under nomination under Sub-section (6) or under trust under Sub-section (7) but if he does elect to nominate then such nomination takes it out of the trust under Section 6, Married Women's Property Act. 14. This conclusion appears to me also to accord with commonsense. To give the policy-holder the right to cancel the nomination by transfer or assignment or will or further endorsement and to provide in the case of the nominee's dying before maturity or before the policy-holder the money to belong to the policy-holder or h ..... X X X X Extracts X X X X X X X X Extracts X X X X
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