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1 MARRIED WOMENS PROPERTY ACT, 1874


1.1.1. Extract of Section 6 of the MWP Act

Extract of Section 6 of the MWP Act reads as follows: A policy of insurance effected by any married man on his own life, and expressed on the face of it to be for the benefit of his wife, or of his wife and children, or any of them, shall ensure and be deemed to be a trust for the benefit of his wife, or of his wife and children, or any of them, according to the interest so expressed, and shall not, so long any object of the trust remains, be subject to the control of the husband, or to his creditors, or form part of his estate. When the sum secured by the policy becomes payable, it shall, unless special trustees are duly appointed to receive and hold the same, be, paid to the Official Trustee of the State in which the office at which the insurance was effected is situate, and shall be received and held by him upon the trusts expressed in the policy, or such of them as are then existing. A Muslim proposer cannot take out policies for the benefit of the wife and children as a class. The wife and/or children must be named in the policy and must be existing at the date of the policy. Where there are two or more Beneficiaries, the proposer cannot provide that the benefit of the policy should go to them jointly or to the survivors or survivor of them, but he should mention the respective shares of the different beneficiaries. The Beneficiaries may be given either equal shares or specified unequal shares. Where there are named Beneficiaries, it is not open to an assured to make any changes in trust by cutting out any Beneficiary or by adding any new person, say any subsequent child. Where there is Beneficiary, the appointed trustees would hold the Policy moneys in trust for the Beneficiary or, if the Beneficiary is dead, for the benefit of the person who would be entitled to his or her estate wither under his or her will or, if there is no will, as on his or her intestacy. In case the Beneficiary dies, the trust does not come to an end but the policy monies, on claim arising would be held by the trustees for the benefit of the person or person entitled to the estate of the deceased Beneficiary either under his or her will or as on his or her intestacy.

Where the Beneficiaries are all majors, the trustees will pay to the beneficiaries the claim amount received from the Insurer, unless they have been given specific directions to the contrary by the person creating the trust and a simple payment of the sum will complete the execution of the trust and the trust will come to an end. Where the Beneficiaries are all minors, the trustees will hold the amount for the benefit of the minors. When trustee appointed is not alive on claim payment will be considered to all beneficiaries provided they are major & competent to contract & of one mind. 1.1.2. Interpretation of Section 6

A policy can be effected for the benefit under Married Womens Property Act only a) The Proposer (husband) takes a policy on his own life b) When a written request is received from the Proposer (the husband) at the proposal stage that the policy should be endorsed under MWP Act for the benefit of his wife and/ or children. AND c) The Proposer appoints a Trustee to receive such money 1.1.3. Implications of the MWP Act To Customer and Sales department a) Only a married man can take such a policy for the benefit of his wife and/ or children i.e. only the wife or children or both combined can be the beneficiary It is also permissible for a widower or a divorced man to take out a policy under the said Act for the benefit of his children. An insurance policy under the MWP Act, can be issued to a person resident in India (excluding the state of Jammu and Kashmir). It can be issued to a resident outside India, subject to being permissible under the Exchange control Regulations b) The request for marking the Policy under MWP Act can only be accepted by KOTAK LIFE INSURANCE along with the Proposal for Insurance. Once the policy is issued the policy cannot be marked under the MWP Act. c) The Proposer and the Life to be insured should be the same person i.e. the husband. Therefore policies on the life of a person other than the proposer himself cannot be taken under MWP d) Normal proposal form has to be filled in e) Request for endorsement should be in the format specified at Appendix I. f) The names of the beneficiaries and Trustee should be named in the request letter. This request should be signed by the Proposer and the Trustee. Where a Proposer does not appoint in the Addendum to Proposal special trustees to receive the

g) h) i) j)

k) l)

m) n)

o) p)

policy moneys, it is necessary for him, whenever he would make such an appointment, to execute a Trust Deed appointing a trustee or trustees of the policy moneys and such a Trust Deed has to be stamped having regard to the Stamp Regulations prevailing at the place of executing. The Proposer can name more than one beneficiary. However, the Trustee cannot not be a minor/HUF. The Beneficiary and the Trustee can be the same person (e.g. The Proposers wife can be both the beneficiary and the Trustee). However, the Proposer can neither be the beneficiary nor the trustee The Proposer has the right to change the Trustee during the tenure of the policy. If a Proposer desires to reserve the power to revoke the Appointment of Trustees and appoint new trustees, he should add a proviso to that effect in the appointment of Trustees However, the Proposer does not have the right to change the beneficiaries of the policy On maturity or on death of the Proposer, KOTAK LIFE INSURANCE would pay the claim proceeds to the Trustee/s only. The claim amount would not be paid to the beneficiaries directly. (Even if the Proposer is alive, the claim amount would be paid to the Trustee. The claim amount would not be paid to the Proposer i.e. the Husband) Where a Trustee is not appointed by the Proposer, the claim amount would be paid to the Official Trustee of the State A policy endorsed under MWP cannot be assigned. The beneficiaries/ nominees once appointed at the Proposal stage cannot be changed. Hence nomination change request cannot be accepted. The Trust and the Trustee would be governed under Indian Trust Act Policies under the Joint Life Endowment Assurance plan, childrens Deferred Assurance plan cannot be endorsed for MWP. Hence Child Advantage and Headstart Joint Life Plans cannot be endorsed under MWP Act. Process to be followed at Branch Ops a) Check that request for endorsement of policy under MWP as per Addendum 1 is received with the Proposal Form. b) Ensure that only wife and /or children are named as Beneficiaries. c) The Addendum 1 should be complete in all respects, with the name of the Beneficiaries and the name of the Trustees clearly specified. d) Ensure that the Addendum is signed on the same date as the Proposal Form.

1.1.4.

e) Ensure that the details of the Beneficiary as per the Addendum match with the name of nominees as per the Proposal Form. f) Ensure that the Proposer is neither the Trustee nor the Beneficiary. g) Ensure that the Proposer and Life Insured are the same persons. h) Flag the proposal as MWP in Life Asia and write MWP on top of the Proposal Form. 1.1.5. Process to be followed at CPC at New business stage

a) Request for endorsement of a policy to be taken up only when the same is received in writing (along with the proposal) with complete details of the Beneficiary and the Trustee b) MWP request received after the policy is converted should not be accepted c) The policy document should bear under the section Special Conditions, if any This policy has been endorsed under the Married
Womens Property Act, 1874. As per terms of this endorsement, the benefits under the policy will be payable to the Trustees appointed by the Policyholder for the benefit of the beneficiaries named under this policy. Please note that as a result of this endorsement, the beneficiaries named in this policy cannot be changed and the policy cannot be assigned to any third party. No loan can be granted against security of this policy

d) Client id should be created for such Trustees e) Policies issued under MWP Act should be flagged for easy identification in the system. 1.1.6. Process to be followed at CPC at Policy Servicing stage a) MWP requests should be taken up only at proposal stage b) MWP request received after the policy is converted should not be taken up c) Nomination change cannot be allowed for a policy under MWP Act d) Assignment cannot be allowed for a policy under MWP Act e) Loan from KOTAK LIFE INSURANCE where authorised by the proposer against the policy can be given to the Trustee. f) Surrender/Maturity proceeds should be paid to the Trustee and not the policyowner. 1.1.7. Claims

Where Trustees are appointed, death claim should be paid to the Trustee. In case the Trustee is not alive on the date of

claim, the claim amount can be paid to the Beneficiaries provided they are major and competent to contract Where no Trustees are appointed, the claim should be paid to the Official Trustee of the State.

APPENDIX I - Format of MWP request letter from the Proposer

Request Under Section 6 of The Married Womens Property Act, 1874 (Said Act) Date ______ Kotak Mahindra Old Mutual Life Insurance Limited 6th Floor, Peninsula Chambers Peninsula Corporate Park Lower Parel (West) - Mumbai 400 013 Dear Sir /Madam: I, Mr._____________________, proposing life insurance cover on my life under Proposal Application No. _______for __________________________Insurance Policy of the Kotak Mahindra Old Mutual Life Insurance Limited (the Company), hereby request that the Policy against the said Proposal Form be issued to me under provisions of section 6 of the Married Womens Property Act, 1874, for the benefit of the Beneficiary (ies) hereinafter listed; Sr. No. Name of the Beneficiary (ies) Date of Birth of the Beneficiary (ies) Relationship to the Proposer(Life to be Insured)

jointly or the survivors or survivor of them. Further, Mr. /Ms. ______________________having his/her date of birth as _________, residing at ________________(give full address with pin code)____________________________ and whose signature is appended herein below is appointed as Special Trustee under the provisions of section 6 of the said Act, to receive the proceeds under the Policy of

Insurance and hold the same upon the aforesaid Trust with power and authority to the said Trustee to obtain loan or loans (where the provisions of the policy provide for) on the security of the policy from the Company, subject to the terms and conditions that the Company may prescribe from time to time and for the benefit of the aforesaid beneficiary(ies) as per provisions of the said section 6 and with further with me: (a) to appoint by a deed, a new Trustee in case either the above named trustee declines or is disqualified under the law or becomes incapable to act or cannot act for any reason whatsoever, (b) to revoke by a deed the appointment of the above named Trustee and appoint another in his/her stead.. Request the Company to kindly take note of the above while processing and issuing the Insurance Policy in my favour, making thereon necessary endorsement(s) to this effect. Thanking you, (signature of the Proposer) _______________________________ (signature of the within named trustee)