The Feilding Star. SATURDAY, AUGUST 9, 1890. New Zealand Life Insurance

Feilding Star, Volume XII, Issue 23, 9 August 1890, Page 2

The Feilding Star. SATURDAY, AUGUST 9, 1890. New Zealand Life Insurance

In the House, a few days ago, the member for Greymouth, Mr Guinness, uiade somewhat an outcry agaiust that provision in the law concerning Life Assurance Policies, whereby they are protected in case of bankruptcy or death No doubt when the sapient and honorable legislator '• statod his case" to the Minister he had an idea that he had found a weak spot in the Act which it would be his pleasant duty to point out — and at the same time let his constituents see what a very clever fellow he was. On refereuce to the Act relating to Life Assurance Policies, 1884, we find in clause 33 that no policy shall become a part of a bankrupt's estate for distribution among his creditors, nor seized or levied upon under process of any court whatever, or become available for the payment of debts under an intestacy, or for debts or legacies under a will unless specially directed by such will. If we weie — like the member for Greymouth — to take that clause alone then possibly a hardship might be inflicted on creditors, but the following clause (34) provides that the first- mentioned clause shall only apply to policies which are dependant on the contingencies of the life of the policy-holder himself, and the payments for which to the company issuing the same are by the policy provided to be made during the life time of the insured or during sevea years at least, and to be payable by equal instalments at iutervals of not more than a year, and to any other policies which are dependent on the contingencies of the life of the policy-holder himself, or his children, which at the time of the bankruptcy, &c, or death of the intestate or testator, shall have been in existence for seven years at Least. Further, this protection only avails to protect a policy or policies to the extent of two thousand pounds of assurance, exclusive of any accrued or allotted profits, or in the case of annuities to the extent of £104 per annum. In case of there being any excess over the £2000 any bankrupt, &c, shall, when requested to do bo by the person who would be entitled to such policy but for the suid protection, elect which policy or policies shall be protected, and if the insured fails to so elect within a given time, then the person may elect lv like manner and have his title registered to such oolicy. From these quotations it will he seen that uo excuse is left for creditors not protecting thomselves duriog the life of an insured debtor— provided he is insured for upwards of £2000. As the law now stands it is intended to be a protection to the wise aud prudent whoare making provision for the wives and families they may leave behind them at death ; and not merely to get at scoundrels who live only to defraud their creditors and die as they ; have lived. We hope sincerely the Government will all>>w no amateur tiakering «i v wty t)X«eUtmt Act.