INSURANCE POLICY

Evening Post, Volume CIX, Issue 133, 9 June 1930, Page 11

INSURANCE POLICY

VALUE TO A WIDOW

At his death on 13th February, 1928, Burton Charles Lawrence, of Waitara, Taranaki, left a life insurance policy of a face value of £318 6s. To-day, in the Supreme Court, before his Honour Mr. Justice Reed, the question was raised whether the wife of the deceased was entitled to this sum or the amount less mortgages on the policy (£lB6 Cs 9d), making an amount of £331 19s 3d. The appellant was the Public Trustee, and the respondent the Commissioner of Stamp Duties.

Mr. H. F. yon Haast appeared for the appellant, and Mr. A. Fair, K.C., for the respondent.

It was argued on behalf of the appellant that the value of a life insurance policy meant the amount insured by the policy without regard to any moneys charged on the policy or charges by way of mortgage. The proceeds of the policy., it was contended, was the face value of the policy.

Mr. Fair said he differed from Mr. yon Haast's contention that the ordinary meaning of the words ''value of the life insurance policy" was the amount to be received from the insurance company in respect of it, or, in other words, the actual amount o£ money that would come into the estate from the insurance company. Mr. Fair submitted that the ordinary meaning of "value of an insurance policy" was the amount of the policy, plus the bonuses and less loans or any other charges there might have been. His Honour reserved his decision.