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Under Section 39 of the Insurance Act 1938, the holder of a life policy may nominate a person to receive policy money:
A{'text': 'Only at policy maturity', 'letter': 'A'}
B{'text': 'Only after the first premium is paid', 'letter': 'B'}
C{'text': 'When effecting the policy or any time before maturity', 'letter': 'C'}
D{'text': "Only with the insurer's prior written consent", 'letter': 'D'}
Answer & Solution
Correct answer: C. {'text': 'When effecting the policy or any time before maturity', 'letter': 'C'}
1. Section 39 governs nominations on life-insurance policies on one's own life.
2. The Act allows nominations at multiple stages of the policy life-cycle.
3. Nomination can be made when effecting the policy or at any time before the policy matures for payment.
_Source: Insurance Act 1938 (incorporating amendments till 2021), noc.irdai.gov.in — "The holder of a policy of life insurance on his own life may, when effecting the policy or at any time before the policy matures for payment, nominate the person"_