Friendly Societies Act, 1956 (Act No. 25 of 1956)Chapter III : Administration and Powers of Registered Societies19. Restriction of payments on death of children under fourteen years of age |
| (1) | No society shall insure the life of a child who is under the age of fourteen years for any sum of money which either alone or together with any amount which to the knowledge of the said society is payable on the death of that child by any other society or by any insurer carrying on insurance business within the meaning of the Insurance Act, exceeds — |
| (a) | two hundred and fifty rand, if the child is under six years of age; or |
| (b) | five hundred rand, if the child is six years old or older, but is under fourteen years of age. |
[Section 19(1) substituted by section 42 of Act No. 99 of 1980]
| (2) | Where a society or an insurer has insured the life of a child for a benefit not consisting of a sum of money, it shall for the purposes of this section be deemed to have insured the life of that child for a sum of money equal to the value of such benefit. |
| (3) | The provisions of this section shall not be construed so as to prohibit an insurance which provides for the payment, on the death of any child which is under the age of fourteen years, of a sum not exceeding in the aggregate all the contributions paid in respect of such insurance, plus interest on each contribution at a rate not exceeding seven and a half per cent per annum, compounded annually. |
[Section 19(3) substituted by section 27 of Act No. 101 of 1976]