Insurance Act, 1936

Payment of judgment debts out of deposits.

25.—(1) Whenever a Court makes an order, decree, or judgment for the payment of money by an assurance company or a syndicate to any person in respect of a claim under a policy issued by such assurance company or syndicate (as the case may be), the High Court may, on the application in a summary manner of such person, order such money (with or without the costs of such application) to be paid to such person out of the deposit or any particular deposit maintained by such assurance company or by the Committee of Lloyd's (as the case may be) in pursuance of this Act.

(2) Whenever the High Court makes an order under the foregoing sub-section of this section, the Accountant of the Courts of Justice shall pay the money stated in such order to the person and out of the deposit specified in such order and shall for that purpose sell so much of the investments representing the said deposit as is necessary (after defraying the costs of such sale) to enable such money to be so paid.

(3) Whenever the Accountant of the High Court, in pursuance of an order made by a Court under this section, pays any money out of or sells any of the investments representing a deposit maintained with him by an assurance company or by the Committee of Lloyd's in pursuance of this Part of this Act, he shall forthwith calculate and ascertain the market value of so much of the investments representing such deposit as remains unsold and, if such market value together with any uninvested money included in such deposit falls short of the full proper amount of such deposit, he shall give to such assurance company or such Committee (as the case may require) notice in writing of such deficiency and of the amount thereof.

(4) If, when a notice of deficiency of deposit is given to an assurance company or to the Committee of Lloyd's by the Accountant of the Courts of Justice in pursuance of the next preceding sub-section of this section, such assurance company or the Committee of Lloyd's not more than fourteen days after receiving such notice, deposits with the Accountant of the Courts of Justice a sum equal to the amount of the deficiency stated in such notice, the sum so deposited shall be added to and treated as part of the said deposit and such assurance company or the Committee of Lloyd's (as the case may be) shall be deemed to have maintained such deposit at its full proper amount.