Section 44. Payment of life policy claims without probate, etc. (INSURANCE ACT, 1963

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

PART IV - MISCELLANEOUS AND GENERAL
Miscellaneous amendments of law

Section 44. Payment of life policy claims without probate, etc.

(1) In any case where the policy owner of any life policy or life policies of an insurer dies, and the policy moneys payable thereunder on his death, in so far as they without consist of cash payments due on the death, do not amount in the aggregate to more than ten thousand dollars (after allowing for an deduction the insurer is entitled to make therefrom), the insurer may make any such cash payment or part thereof to a proper claimant without the production of any probate or letters of administration; and the insurer shall be thereby discharged from all liability in respect of the sum paid.

(2) If, in any such case as is mentioned in sub-section (1), estate duty is leviable in the Federation on any such cash payments as are there mentioned, the insurer may notwithstanding sub-section (ii) of section 50 of the Estate Duty Enactment*, 1941[470/64], pay to a proper claimant on account of 1941, any of those cash payments a sum not exceeding nine-tenths of the total amount of that Payment, without the policy moneys having been included in such a schedule or certificate as is mentioned in the said sub-section (ii):

Provided that before making any payment under this subsection the insurer shall give not less than seven days notice in writing to the Collector of Estate Duty with such particulars as he may require.

(3) Sub-section (2) shall apply in relation to cash payments under policies of which the deceased was not the policy owner at his death as it applies in relation to any such cash payments as are mentioned in sub-section (1), if the total amount of the cash payments in relation to which it applies in the case of any insurer is not thereby increased to more than ten thousand dollars.

(4) Where a sum is paid under sub-section (2) on account of any cash payment and the policy moneys are not within twelve months thereafter included in such a schedule or certificate as is there referred to, then the insurer shall deposit the balance with the Treasury for the account of the persons entitled; but on the making of a claim thereto
by those persons, the Treasury may apply the whole or part of the sum claimed in paying any unpaid estate duty leviable on the death.

(5) In thIs section "policy owner" includes a part owner of a policy, and "proper claimant" means a person who claims to be entitled to the sum in question as executor of the deceased, or who claims to be entitled to that sum (whether for his own benefit or not) and is the widower, widow, parent, child, brother; sister, nephew or niece of the deceased; and in deducing any relationship for the purposes of this sub-section an illegitimate person shall be treated as the legitimate child of his actual parents.

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* In its application to Sabah substitute the corresponding written law and the corresponding written provisions-The Estate Duty Ordinance of Sabah (Cap. 42), section 35 (1). There is no corresponding reference to Sarawak.-See Modification of Laws (Insurance) (Extension) Order, 1964, F.L.N. 470/64.