LIFE INSURANCE ACT

Nelson Evening Mail, Volume LXVI, 1 May 1934, Page 2

LIFE INSURANCE ACT

PROVISIONS OP SECTION CRITICISM BY "CHIEF JUSTICE (By Telegraph—Press Association) WELLINGTON, This Day. In answering an originating summons in the case Trenvayt 1 v. Public Trustee heard by it oil 21st March and 17th April, the Court of Appeal this morning held that the protection afforded by the Life Insurance Act, 1908, and 1925, did not extend to the plaintiff, Mr Tiemain, and that she was not entitled to require that the proceeds of the sale by the Public Trustee of lands formerly held by the bank as security, should be applied in recouping to her the loss sustained by the bank’s election to pea-, lise its security -over the- policy. 'The' Chief Justice, in dealing with the provisions of section 3 of the 1925 Act said: “One cannot help' feeling that in the framing of this section clarity lias been sacrificed to brevity, with the result as usually happens in such circumstances, that interpretation is made extremely difficult. From every point of view this case shows that the existing legislation regarding the protection of life insurance policies is unsatisfactory, and the matter is of such importance as in my opinion to call for..urgent consideration by those responsible for the framing of. our statutes.” -:\,