Is your insurance policy safeguarded under MWP Act?

From being one of many oldest Acts in India to being one of the vital under-rated concepts within the market, a majority of the inhabitants is unaware of the Married Women’s Protection Act 1874 (MWP Act). In easy phrases, the MWP Act is a provision that protects the insurance money from collectors, banks & authorities companies. No marvel, it is usually on a lighter notice known as Insurance ka Insurance.

We all need to be accountable, all of us need to ensure that we ship what’s entrusted upon us. More so with the lads as they’re seen because the breadwinners of the Indian households. They strive exhausting to make ends meet, succeed of their pursuits, and take a look at to verify they offer a life to their household that’s at the very least snug, if not luxurious, protected if not adventurous & filled with obligatory provisions, if now abundance.

In the pursuit of creating life worthwhile, operating business, taking loans, producing revenues, sustaining cash-flows, reaching break-evens, managing EMIs, and so on., there are too many dimensions to creating ends meet and as a rule, households end-up having collectors and a bunch of people or organizations that they owe a sum to. The world has normalized credit score, personal & authorities companies encourage credit score, however its flip facet is seldom seen by the credit score bearers. Any incapability to repay, transfers the legal responsibility on the household, property, property and so on, thereby not solely damaging the dignity of the household but additionally the monetary standing.

What is MWP Act

Section 6 of the Married Women’s Protection Act 1874 states & highlights “a policy of insurance effected by any married man on his own life and expressed on the face of it to be for the benefit of his wife, or of his wife and children, or any of them, shall ensure and be deemed to be a trust for the benefit of his wife, or of his wife and children, or any of them according to the interests so expressed, and shall not, so long as any object of the trust remains, be subject to the control of the husband, or to his creditors, or form part of his estate.”

Explanation: If the time period insurance or life insurance policy is under the The MWP Act of 1874, it would make sure that the beneficiary of the policy, i.e. the spouse, or the kids or each, will all the time stay entitled to obtain the insurance proceeds, neither the collectors, authorities companies, nor the husband/ insured himself can have a declare or management over the policy proceeds.

Who can go for Insurance under the MWP Act

Any male married Indian resident can avail the policy under the MWP Act. The advantage of MWP Act could be availed solely throughout the buy of a brand new/recent policy. If you’re a widower or a divorcee, you may nonetheless avail an insurance policy under the MWP Act whereby you may declare your kids because the beneficiary of the policy.

Who could be added as beneficiary under the MWP Act

As beneficiaries of the insurance policy, you may add your spouse alone, or your little one/kids alone or your spouse & kids collectively. You may determine the proportion every beneficiary will likely be entitled on the time of the proceed payout, however as soon as declared, it can’t be modified. Even if the policy is surrendered, the due payouts will likely be obtained by the beneficiaries as declared within the policy. In case of separation, the beneficiaries will stay the identical. Parents can’t be added as beneficiaries within the Insurance policy under the MWP Act.

How to go for insurance policy under the MWP Act 1874?

At the time of taking the policy, you simply must fill-up & signal an MWPA addendum together with the application kind. Some insurers have this selection even within the application kind & policy holders simply want to pick out the choice ‘yes’ within the kind to take the policy under the MWP Act. Once the policy is taken under the MWP Act, the declared beneficiary can’t be modified.


In this world of credit score & loans, it’s a frequent factor to see households with lakhs and crores of money owed within the pursuit of constructing property, be it employed people or businessmen. How does one ensure that the dependents, i.e. your household, obtain your insurance proceeds in case of an uneventful loss of life of the insured? This is the place the MWP act of 1874 comes into the play to make sure that the dependent’s (household’s) future is secured financially.

Make certain that in case you are a married man, you are taking your subsequent insurance policy, be it time period or life, under the MWP Act 1874. You might get in contact with your Insurance Manager or advisor for extra info on this.

(By Jayprakash Shetty, Certified Financial Advisor and Personal Finance Coach)

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