Deceased debts out of insurance benefits
Pronote suit was initiated and decreed against LRs of deceased. They haven't inherited any property from deceased but they received his insurance benefits on his death. Now do they need to repay the debt for receiving those benefits in execution petetion. Kindly suggest in this regard.
Asked in Civil Law from Guntur, Andhra Pradesh
a married women policy ( MWP )insurance policy is free from creditors and court attachments. The welfare of wife and children are protected with utmost care
2) The policy maturity, surrender value will go to the the beneficiaries only
3) . If the life insurance policy has been purchased with an intention to defraud creditors, the protection under MWP may not work. Creditors can assert their right to get paid out of the proceeds of the life insurance policy.
If there is no proeprty amenable for attachment then there is alternative.
Alternative is arrest and sending the Judgement Debtor to civil prison to pass jail term.
So ask for issuance for arrest warrant agaisnt the JDRs.
It will yield desired results.
You should challenge the execution petition as legal heirs are liable only to the extent of property so received by them.
Insurance policy amounts received by legal heirs are not liable for attachment and hence cannot be claimed by the Judgment Creditor.
Judgment creditor can only proceed against the properties, saving bank account etc and not the Insurance benefits.
Challenge the Execution Petition.
1. The LRs are liable to pay the dues standing in the name of the deceased predecessor to the extent which they have inherited as his LRs.
2. In the instant case, they are liable to settle the outstanding of their deceased predecessor to the extent of what they have received as insurance benefits only.
Insurance benefits of the deceased are not in the nature of property. Hence they are beyond the pale of attachment in execution petition.
Insurance death claim cannot be termed as inheritance.
The purpose of taking police is to benefit the legal heirs due to untimely demise of the policy holder for the benefit of his dependents.
In pronote suit, if you have inherited any other kind of properties you may become liable for repayment of the loan availed b the deceased.