Clause 44

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 consist of cash payments due on the death, do not amount in the aggregate to more than ten thousand dollars (after allowing for any 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.

If, in any such case as is mentioned in subsection (1) of this section, estate duty is leviable in Singapore on any such cash payments as are there mentioned, the insurer may notwithstanding subsection (2) of section 40 of the Estate Duty Ordinance (Cap. 162) pay to a proper claimant on account of 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 subsection (2): Provided that before making any payment under this subsection the insurer shall give not less than seven days’; notice in writing to the Commissioner of Estate Duties with such particulars as he may require.

Subsection (2) of this section 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 subsection (1) of this section, 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.

Where a sum is paid under subsection (2) of this section 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 Accountant-General for the account of the persons entitled; but on the making of a claim thereto by those persons, the Accountant-General may apply the whole or part of the sum claimed in paying any unpaid estate duty leviable on the death.

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 subsection an illegitimate person shall be treated as the legitimate child of his actual parents.