As enacted

Contents

Regulation of Insurance Industry Act 2000 · As enacted · Part IV · Long Term Insurance Business

43. Power of policy holder to nominate person or persons to whom the money secured by the policy shall be paid

Official English translation. Where it differs from the Sinhala or Tamil text, the Act itself says which text prevails.

(1)

The holder of a policy of long term insurance business may, when effecting the policy or at any time before the policy matures for payment, nominate the person or persons to whom the money secured by the policy shall be paid in the event of his death :

Provided that, where any nominee is a minor, it shall be lawful for the policy holder to appoint in the prescribed manner any person on behalf of the minor, who may receive the money secured by the policy, in the event of his death during the minority of the nominee.

(2)

A nomination under subsection (1) shall, unless it is incorporated in the text of the policy itself, be made by an endorsement on the policy and such endorsement shall by notice in writing be communicated to the insurer who shall register such endorsement in the record or register relating to that policy. Any such nomination may at any time before the policy matures for payment be cancelled or changed by another endorsement or by a will of the policy holder, as the case may be, and unless notice in writing of any such cancellation or change has been given by the policy holder to the insurer, the insurer shall not be liable for any payment under the policy made bona fide by him to a nominee mentioned in the text of the policy, or registered in records of the insurer.

(3)

The insurer shall furnish to the policy holder a written acknowledgment of having registered a nomination or of any cancellation or change thereof.

(4)

A transfer or assignment of a policy made in accordance with section 39 shall have the effect of canceling a nomination :

Provided that, the assignment of a policy to an insurer who bears the risk on the policy at the time of the assignment, in consideration of a loan granted by that insurer on the security of the policy within its surrender value, or its reassignment on repayment of the loan, shall not effect a cancellation of a nomination, but shall affect the rights of the nominee only to the extent of the insurer’s interest in the policy.

(5)

Where the policy matures for payment during the lifetime of the person whose life is assured or where the nominee, or if there are more nominees than one, all the nominees, die before the policy matures for payment, the amount secured by the policy shall be payable to the policy holder or his heirs or legal representatives, as the case may be.

(6)

Where the nominee, or if there are more nominees than one, one or more of such nominees survive the person whose life is assured, the amount secured by the policy shall be payable to such survivor or survivors.

Read on from s 44

Part V