Section 42. Life policy moneys to be paid without deduction. (INSURANCE ACT, 1963

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

PART IV - MISCELLANEOUS AND GENERAL
Miscellaneous amendments of law

Section 42. Life policy moneys to be paid without deduction.

(1) Any policy moneys payable under a life policy or Life policy moneys payable on the surrender of a life policy shall be paid without any deduction for sums not due under the policy or under an agreement charging them on the policy, deduction, unless the deduction is made with the consent of the person entitled to those moneys; and any provision contained in a life policy or in any agreement relating thereto shall be void, in so far as it entitles the insurer to make any such deduction without that consent.

(2) Sub-section (1) shall apply to all Federation policies, but shall not apply to any other policy issued before the commencement of this Act.

(3) In any proceedings for the recovery of policy moneys due under the life policy or lof moneys payable on the surrender of a life, policy, no set-off or counter-claim shall be allowed except for sums due under the policy or under an agreement charging them on the policy.