Several women continue to rely on male family members and lack control over their assets. The Married Women’s Property Act (MWPA) provides financial security for married women and their children. Explore the significance and advantages of the MWPA in India to understand its impact on women’s financial independence.
What is the Married Women’s Property Act?
The Married Women’s Property Act of 1874 (MWPA) was enacted to grant married women in India exclusive rights to their property. The act ensures that a married woman’s property remains solely hers, safeguarding it from claims by her parents, siblings, husband, in-laws or children. This legal protection assures financial security for women and their dependents. An amendment in 1923 extended the MWPA to include life insurance policies, emphasizing that the benefits from such policies belong solely to the nominated beneficiaries. If a married man opts for a life insurance plan with the MWPA addendum, the benefits are considered separate from his estate, ensuring that they are protected for the nominated beneficiaries in case of his untimely demise.
Who can buy insurance under the Married Women’s Property Act?
Indian citizens, including married men, divorcees and widowers, can choose insurance under the Married Women’s Property Act (MWPA). In this scenario, individuals can designate their children as beneficiaries. However, the benefits are only applicable at the time of policy inception and the policy must be purchased in the individual’s name.
Benefits of insurance under Married Women’s Property Act
In addition to safeguarding women’s property rights in India, purchasing insurance under the Married Women’s Property Act (MWPA) offers various advantages:
Protection from outside claims: The policy, exclusively designed for the benefit of the wife and children, cannot be claimed by other relatives of the policyholder.
Protection from creditors: In the event of the policyholder’s sudden demise with outstanding loans, policies under the MWPA are shielded, preventing creditors from making claims.
Independence from will inclusion: Policies under the MWPA cannot be included in the will of the policyholder as they operate as separate trusts.
Resolution in family disputes: In case the policyholder resides in a joint family, an insurance policy with MWPA protection ensures the security of the wife and children in the event of family disputes.
Who should buy insurance under the Married Women’s Property Act?
The following individuals should consider MWPA insurance:
Business owners: Business owners or partners should consider MWPA insurance to safeguard business assets and mitigate potential risks or future claims.
High net worth individuals: Those with significant assets and wealth should strongly consider MWPA insurance. It provides an additional layer of protection for valuable assets, ensuring financial security for themselves and their families.
Individuals with dependents: Married men with dependents, such as a wife or children, should opt for MWPA insurance. Serving as a safety net, it guarantees financial security in the event of unforeseen circumstances.
How to buy insurance under the Married Women’s Property Act?
When acquiring a policy, include the MWPA addendum with your insurance application. This option is available for online policies as well. The remaining steps of the insurance application process remain unchanged.
Who can be a beneficiary under Married Women’s Property Act?
Under the Married Women’s Property Act in India, a married man has the flexibility to designate his wife, child or children or both his children and wife as beneficiaries. This act serves as a protection for the wife and children during financial or legal disputes. By naming them as beneficiaries, the husband establishes their legal claim over the property or assets.
Policyholders can allocate specific percentages of the total amount to each beneficiary or distribute it equally. However, once the policy is issued, the beneficiaries cannot be altered. Therefore, even in the case of divorce, the designated beneficiary (i.e., the ex-wife) remains unchanged. The MWPA allows the husband to specify the share of the property or assets that each beneficiary will receive, ensuring equitable distribution and preventing potential disputes among beneficiaries.
Married Women’s Property Act
