Q526
State which of the following assets is beyond the scope of the creditors.
A.
'Ramakant’s indebtedness after his demise can lead to the creditors taking away his property
B.
'Ramakant’s bank accounts can be attached to clear off his debts
C.
Mutual funds proceeds can be attached by the creditors
D.
Term policy proceeds under MWP Act
AnswerAnswer: Option D
Solution
Answer: Option D
Solution:
Term policy proceeds under MWP Act is beyond the scope of the creditors. If the Insurance policy was purchased under MWP Act, creditors cannot claim any amount from the policy proceeds and thus the claimed amount becomes available to the nominees.