Insurance Policy Under Married Women’s Property Act, This article is about the insurance policy which is taken under the Married Women’s Property Act where the married women has been protected against any liability of the men’s business liabilities such as creditors or the loan taken for the business purpose. If there is sudden demise of the men, then this stakeholders would not be able to recover anything from the wife of the person. Now you can scroll down below n check more details regarding “Insurance Policy Under Married Women’s Property Act”
Insurance Policy Under Married Women’s Property Act
Married Woman Property Act, 1874
Many of the people around us have business in the name of the fathers or the fore fathers, which is runned by them. In this businesses, as people intend to try different things in the business and take risk and carry out different activities, there may be risk of liquidation or there may be risk of loss of person, and to save the heirs from the liabilities of the business and proceed their life further smoothly, these policy is very much beneficial.
This policy saves the family of the demised from the financial liabilities of the business. As in the business, there may be situations where the liabilities are more than the assets, there may be cases where the person needs to take care of the level of business that he can conduct.
How all this would be done ?
- Under the Married Woman Property Act, 1874, there is a section called Section 6 which safeguards the married woman from all the liabilities of the external parties.
- This policy can be taken by any woman of any caste, religion, creed, not matter whatever would be the case.
- There would a Trust created and there would be the beneficiaries to the trust. This beneficiaries once appointed cannot be changed.
- The beneficiaries to this policy can be –
- Only Wife
- One or more children of the wife
- Wife and her children (one or more)
- If there are 2 or more beneficiaries than the shares of the each such beneficiaries needs to be mentioned, if not it would be assumed to be equal.
How to take Insurance Policy under this Act ?
The procedure under this policy is very simple. You need to only give a simple form along with the adopted insurance policy. The name of the form is “Addendum to proposal form for policy under Married Women’s Property Act”. In this form, you need to mention the name of the beneficiaries, name of trustees, authorised signatory, their shares, etc.
Why is Insurance Policy under MWP Act not so famous ?
There are mainly two reasons for the MWP Act not so famous. They are:
- There is lack of awareness amongst the people regarding the policy and the benefits of the same. It is hard to believe that in the insurance industry also, the policy is known by many of the insurance agents. So for improving this door to door marketing needs to be done for making the policy famous amongst the people and telling the benefits of the same.
- As this would give the total control over the wives, many men would not prefer the same to be transferred to their wives, so they are not wishing, that this needs to be taken for the women. And as all this policies are majorly handled by men, they would not prefer to take.
Is it true that all life insurance companies have been asked to discontinue the MWPA , section 6 , with effect from March 31st 2017 ? Reason being cited by a leading private life insurer is that he government feels huge bank loans have been taken by people , then life insurance policies are purchased under the MWPA ?
Can you kindly confirm if it is so.
Thanks and regards