Friendly Societies Act 1974

72 Limitations on insurance of life of parent or grandparent

(1) In effecting an insurance for the purpose referred to in paragraph (2)(d) of Schedule 1 to this Act, a registered friendly society or branch thereof shall not insure to be paid to any person on the death of any one of his parents or grandparents any sum which, either taken alone or when added to any sum or sums for the time being insured to be paid to that person on that death under any other relevant insurance or insurances taken out by him, exceeds £30.

(2) Where an insurance has been effected for the purpose referred to in paragraph (2)(d) of Schedule 1 to this Act then, subject to subsection (3) below,—

(a) the society or branch shall not, by virtue of or in connection with that insurance, pay to any person any sum which exceeds £30 when taken alone; and

(b) the society or branch shall not, by virtue of or in connection with that insurance, pay to the person by whom that insurance was taken out any sum which exceeds £30 when added to any sum or sums paid to him, on the death on which money was thereby insured to be paid, by virtue of or in connection with any other relevant insurance taken out by him; and

(c) if any payment has been made on the death in question by virtue of or in connection with that insurance to the person by whom it was taken out and that payment has not been repaid, the society or branch shall not pay to him on that death, by virtue of or in connection with any other relevant insurance taken out by him, any sum which exceeds £30 when added to the sum so paid and not repaid, or when added to it and to any sum or sums paid to him on that death by virtue of or in connection with any other relevant insurance or insurances taken out by him.

(3) For the purposes of subsections (1) and (2) above there shall be excluded—

(a) any sum insured to be paid, or paid,—

(i) by way of bonus, other than a guaranteed bonus; or

(ii) by way of repayment of premiums ; or

(iii) under a free paid-up policy which was in force as such on 30th June 1948 or had been applied for or claimed before that date; and

(b) so much of any sum insured to be paid, or paid, on the death of any one of a person's parents or grandparents as represents any increase in a benefit payable by the society or branch or by an industrial assurance company under a friendly society or industrial assurance company contract, as those terms are defined in section 6 of the [1969 c. 19.] Decimal Currency Act 1969, resulting from the adoption of a scheme prescribed or approved in pursuance of subsection (3) of that section.

(4) In this section " relevant insurance " means an insurance effected (whether before or after the commencement of this Act) by a registered friendly society or branch or by an industrial assurance company in exercise of any power conferred by—

(a) section 3 of the [1923 c. 8.] Industrial Assurance Act 1923 (which has not been operative since 1949 in the case of insurances on lives of persons resident in the United Kingdom or the Isle of Man);

(b) section 1 of the [1929 c. 28.] Industrial Assurance and Friendly Societies Act 1929 (which after the commencement of this Act is confined to industrial assurance companies but is otherwise similar to paragraph 2 of Schedule 6 to this Act);

(c) section 2(1) of the [1948 c. 39.] Industrial Assurance and Friendly Societies Act 1948 (which after the commencement of this Act is confined to industrial assurance companies but is otherwise similar to paragraph (2)(d) of Schedule 1 to this Act);

(d) paragraph (2)(d) of Schedule 1 to this Act; or

(e) paragraph 2 of Schedule 6 to this Act.

(5) In this section "parent" includes a stepfather and a stepmother and references in this section to a payment on a person's death include references to a payment for his funeral expenses.