Amendments to Section 57 of the Insurance Act (Chapter 142) – Insurable Interest Required for Life Insurances
Previously, a life policy to insure a child/ward for a third party policy can be done as long as the child below 21 years of age. The change in the Insurance Act lowers the age cap to 18.
Hence for all new third party policy applications where a parent takes a life policy insuring his child, the child has to be below the age of 18 years old. This change takes immediate effect.
To re-cap, a life policy insuring the life of a person which is issued by a registered insurer shall be void unless :
(a) the person effecting the insurance has an insurable interest in the life which is insured at the time the insurance is effected;
(b) the life which is insured is that of :—
(i) the person effecting the insurance;
(ii) his spouse at the time the insurance is effected;
(iii) his child or ward under the age of 18 years at the time the insurance is effected; or
(iv) any other person on whom the person effecting the insurance is, at the time the insurance is effected, wholly or partly dependant.