INSURANCE POINT

Evening Post, Volume CXVII, Issue 72, 26 March 1934, Page 10

INSURANCE POINT

PROTECTION OF MONEYS

A TESTATOR'S DEBTS

On an appeal from a Supreme-Court judgment given by Mr. Justice-.Ostler last year, the Court' of Appeal , was asked today to decide whether moneys payable under a Scottish life insurance policy are protected against- payment of the debts of a testator who : died domiciled in New Zealand. '■ Mr;1 !Jus> tice Ostler held in his judgment that the money was not so protected /and therefore was available for ..the:_..;payment of debts. •".-.-■'■-■■•.!■■"•'..-... The estate concerned- was that; "of George Douglas - Lyon, • a farmer, lats of Tuta'ki, Murchison. At the: time;of his death he held a policy of life' insurance, worth approximately £800, which was issued by the; Scottish Widows' Fund and Life Assurance Society. . The head officeof-the company is in Edinburgh. It has'never carried on business in New nor Has-it ever had any office*or agency in the Dominion. Under sections 65 and 66" of the New Zealand Life insurance' Act, 1908, life insurance policy moneys iip to £2000 are protected against' the payment of a testator's debts, and the question, the Court has to decide, is whether these section's are applicable to the policy held by the late' Mr. Lyon. On the Bench were the Chief Justice (Sir Michael Myers),.Mr. Justice Herdman, Mr. Justice MaeGregor Mr. Justice Blair, and Mr. Justice Kennedy. \ Mr. "W. V. Rout, of Nelson; .appeared for Sarah Charlotte Lyon, widow of tha testator, the appellant; Mr. E. S. Smith for the Public Trustee as administrator of the estate; and Mr. H. F..O'Learvy with him Mr. W. V. Fletcher (Nelson),, for creditors of the deceased.. , - Legal argument was unfinished at.tb.B time of going to p"ress. : -. '•' ( - ,