Changes to Section 57 of the Insurance Act

There has been a recent change in Section 57 of the Insurance Act where the insurable interest on the life of a child has been amended to below age 18.

An extract of the act states : "A Life policy insuring the life of a person which is issued by a registered insurer shall be void unless his child or ward under the age of 18 years at the time the insurance is effected."

This essentially means that parents can no longer buy an insurance policy on their child's life once he is above the age of 18. Also, a transfer of policy (be it under any of the optional riders) cannot take place unless the child is below 18 years of age.

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