Clause 42

Any policy moneys payable under a life policy or 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, 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.

Subsection (1) of this section shall apply to all Singapore policies, but shall not apply to any other policy issued before the date of the coming into operation of this Act.

In any proceedings for the recovery of policy moneys due under the life policy or of moneys payable on the surrender of 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.