34.—(1) Subject to sub-paragraph (2), any payment received under an insurance policy taken out to insure against the risk of being unable to maintain repayments—S
(a)on a loan which is secured on the dwelling which the applicant occupies as the applicant's home; or
(b)under a regulated agreement as defined for the purposes of the Consumer Credit Act 1974 M1 or under a hire-purchase agreement or a conditional sale agreement as defined for then purposes of Part 3 of the Hire-Purchase Act 1964 M2.
(2) A payment referred to in sub-paragraph (1) is only to be disregarded to the extent that the payment received under that policy does not exceed the amounts, calculated on a weekly basis, which are used to—
(a)maintain the repayments referred to in sub-paragraph (1)(a) or (b); and
(b)meet any amount due by way of premiums on—
(i)that policy; or
(ii)in a case to which sub-paragraph (1)(a) applies, an insurance policy taken out to insure against loss or damage to any building or part of a building which is occupied by the applicant as the applicant's home and which is required as a condition of the loan referred to in that sub-paragraph.