Payment without probate, etc

(1) An insurance company by which any moneys are payable under one or more policies to the personal representative of a deceased person may, without requiring the production of probate or letters of administration, pay out of such moneys any amount (including any bonuses added to the policy or policies) not exceeding five thousand dollars to any person who satisfies the insurer that he is entitled to the property of the deceased person or that he is entitled to obtain probate of the will of the deceased person or to take out letters of administration to his estate. probate, etc. in certain cases. (2) An insurance company which, pursuant to sub-section (1) proposes to make payment of any moneys due under the policy or policies shall retain an amount equal to ten per cent of the total moneys due under the policy or policies and shall pay that amount to the Registrar General as an instalment on any duties which became due and payable on the estate of the deceased person under the Estate Duty Act, before its repeal. (3) Where any moneys are paid by an insurance company to the Registrar General under sub-section (2) of this section, then, if the Registrar General is satisfied that– (a) no duty was payable under the Estate Duty Act, before its repeal in respect of the estate of the deceased person; or (b) moneys paid under sub-section (2) are in excess of the amount of duty payable under the Estate Duty Act, before its repeal in respect of the deceased person’s estate, the moneys or the excess of duty so paid shall be refunded to the insurance company. (4) The insurance company making any such payment shall be thereby discharged from all further liability in respect of the moneys so paid. 146 (5) All persons to whom any such moneys are paid shall apply those moneys in due course of administration and, if the insurance company thinks fit, it may require those persons to give sufficient security by bond or otherwise that the moneys so paid will be so applied.