How does one differentiate between Section 5 and Section 6 of the Married Women’s Protection Act (MWPA), 1874?
— Raj Kumar
Section 5 of the MWPA 1874 states that any married woman may effect a policy of insurance on her own behalf and independently of her husband. In such a policy, which may or may not be with the consent of her husband, only she has the sole authority over the benefits of the policy.
Section 6 of the MWPA pertains to the policy of insurance effected by any married man on his own life and to the benefit of his wife. Such a policy will not be subject to the control of the husband, or to his creditors, or form part of his estate. Both the sections empower a married woman. But the difference is about the policyholder and the beneficiaries.
Under section 5, the policyholder and beneficiary both are the woman, while under section 6, the policyholder is the man who creates a policy for his wife and/or children and the beneficiaries are the latter.
I am a 45-years-old man and want to purchase a Smart Wealth Plan (short-term). I am willing to pay a premium of ₹25 lakh per year for the next 10 years. Alongside, I want to insure myself for ₹1 crore with a policy rider in case of any accident. How should I apply for this rider and will I get any benefit in case of an accident beyond the policy term?
— Raj Kumar
Typically riders of the policy would offer coverage for the premium paying term of the plan. The premium charged to you for the rider would be based on annual premium of the regular pay mode. In the case you mentioned, the premium paying term is 10 years. So, coverage of the rider would be only for the first 10 years.
The minimum and maximum amount of the sum assured for waiver of premium rider for this plan is ₹1,000 and ₹25,00,000, respectively. The premium for this rider is based on premium, age, policy term, gender and whether the life insured and policyholder are the same. For example, for an 18-year-old, where the premium payable is ₹10,000 for a policy term of 5 years, the premium for this rider would be ₹22.
Abhishek Bondia is principal officer and managing director, SecureNow.in.
