Sunday, September 22, 2013

Policy moneys protected from attachment

Please note that life insurance policy moneys, in India, are protected from attachment by a court as per the Civil Procedure Code. Section 60(1) of the Civil Procedure Code says.. ”Provided that the following particulars shall not be liable to attachment or sale, namely:
(kb) all moneys payable under a policy of insurance on the life of the judgment debtor”.

This principle was upheld by the Madras High Court in LIC of India vs John Bosco and others (Order dated 16-4-2002) AIR2002 Madras 348. It said, “ …If that be so, even though in the instant case the decree holder / first respondent proposed to attach the policy amount payable to the father of the judgment debtors /Respondents 2 and 3 , in my considered opinion, it would offend the legislative object enshrined under proviso (kb) to Section 60(1) C.P.C, and therefore, such policy amount of the father of the judgment debtors / Respondents 2 and 3 is also not attachable…..”




3 comments:

  1. From: ramakrishnan lalitha
    Date: Mon, Sep 23, 2013 at 2:54 PM
    Subject: Thank you-The blog is a goldmine
    To: LII Prog

    Dear sir,
    The blog is a gold mine. My colleague who is teaching life insurance is very happy about the contents. Thank you so much, Dr.Lalitha,Pondicherry University,Karaikal campus.


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  2. From: Joseph Abraham
    Date: Mon, Sep 23, 2013 at 3:57 PM
    Subject: Re: Blog: lifeinsuranceinsights.blogspot.in
    To: LII Prog

    Congratulations on completing 100 posts. I have gone through a number of posts, but not all. Highly informative and enlightening,

    P.J.Abraham,

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  3. Rugmani Md to me
    Sep 22 (1 day ago)
    Respected Sir,
    Just now I was going through the blog. While reading the topic on offer, acceptance, contract of utmost good faith I felt that I was sitting in my Mercantile Law class during my college days. It is so interesting to see the way you have presented it. The origin of disability benefit is entirely new information. You are really giving us a lot of surprises Sir. Thank you so much. Informed many of our LIC people to visit this valuable blog…..Rugmini


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