Can a creditor in case of repayment of debts attach life insurance policies issued under the Married Women’s Property Act (MWPA)?
Deepika Shetty, Mangalore
A policy bought under the MWPA becomes the absolute property of the married woman and works like an assignment. Since the purchaser does not have any financial interest in the policy, its proceeds cannot be attached against the claim of a creditor. Any policy can be issued under the MWPA. This option has to be exercised at the time of buying the policy. A policy legally assigned in favour of somebody becomes his (assignee) property and, therefore, cannot be attached by his creditors.