Section 14. Payment in Federation currency of policy moneys under life policies. (INSURANCE ACT, 1963

(P.M. ACT 1 OF 1963)
INSURANCE ACT, 1963

PART II - CONDUCT OF INSURANCE BUSINESS
Miscellaneous requirements as to conduct of business

Section 14. Payment in Federation currency of policy moneys under life policies.

(1) In the case of a life policy issued as a Federation policy after the commencement of this Act to a policy owner who is a citizen of the Federation, any policy moneys or moneys payable on the surrender of the policy shall, notwithstanding any thing in the policy or in any agreement relating thereto, be paid in the currency of the Federation, unless at the time of payment it is otherwise agreed between the insurer and the person entitled to payment.

(2) Where a Federation insurer satisfies the Commissioner as regards, any life policy registered under this Act by the insurer that the policy moneys (including any moneys payable under the policy on a surrender) may not under the policy or any agreement relating thereto be paid in the currency of the Federation, then for purposes of sub-section (2) of section 11 there shall be disregarded such part of the value of the assets of the relevant insurance fund as is equal to the value of the insurer's liability in respect of the policy determined on a basis approved by the Commissioner.