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CS Professional · Banking and Insurance - Laws and Practice · Functions in Insurance and Compliance related thereto (Part II)

Ravi assigned his policy to Sunita on 5 March by a duly attested instrument. Sunita delivered written notice with the instrument to the insurer on 20 March. Ravi had earlier assigned the same policy to Tarun by attested instrument, and Tarun delivered notice on 12 March. Who has priority?

Tarun has priority. Under the Act, priority among assignees is governed by the order in which written notices of assignment are delivered to the insurer, not by the dates of the instruments. Tarun's notice of 12 March preceded Sunita's of 20 March.

  1. ASunita, because her instrument is later and prevails
  2. BTarun, because priority follows the order in which notices are delivered to the insurerCorrect
  3. CSunita, because her instrument was executed on 5 March
  4. DBoth equally, in proportion to the amounts assigned

Explanation

The date on which notice is delivered to the insurer regulates priority, and where there are several instruments, priority follows the order of delivery of notices. Tarun's notice on 12 March came before Sunita's on 20 March. Execution dates do not decide priority.

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