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Both Section 5 and Section 6 of MWPA empower married women. Section 5 states married women can purchase a life insurance policy for themselves independently, and Section 6 states married men can buy life insurance cover to safeguard their wives and children against creditors and family disputes.
Married women are the pillars of strength, happiness, and well-being in every family. They nurture children and support partners to build strong, resilient families.
However, in many parts of India, especially rural India, women do not enjoy property rights. They do not own or control assets, generate income, or make financial decisions related to property management.
It can lead to financial inconsistencies during unprecedented scenarios, such as when she separates from her husband, her husband passes away, or she becomes the sole earning member of a family with increased loans and liabilities.
The Married Women's Property Act (MWPA) was enacted to safeguard married women and ensure financial security for their lives. MWPA Section 5 and MWPA Section 6 are significant because they are about life insurance benefits for financial protection.
Let us delve into understanding them and their differences right away!
What Is The Married Women’s Property Act (MWPA)?
The Married Women’s Property Act, MWPA, was introduced during the British colonial period in 1874 to safeguard women's property rights from their families, including parents and their husband’s parents and creditors.
The MWPA was further amended in 1923 to include an entitlement to life insurance benefits to offer financial protection to married women and their children. Section 5 and Section 6 are two provisions that relate to life insurance plan benefits for married women.
Difference Between MWPA Section 5 And MWPA Section 6
Differentiating Factors |
MWPA Section 5 |
MWPA Section 6 |
Meaning |
Section 5 states that a married woman, with or without her husband's consent, can avail of a life insurance policy on her behalf and be the sole decision-maker on the disbursement of the benefits. |
Section 6 states that a married man can purchase a life insurance policy for himself and entitle the benefits to his wife and children.
The life insurance plan benefits will not be subject to the husband's control, form part of his estate, or be utilised by his creditors. |
Primary Purpose |
Help married women access life insurance plans independently and have control over the financial benefits. |
Help married men purchase life insurance plans to ensure financial protection for their wives and children by designating them as beneficiaries and negating the control over the financial benefits by other family members or creditors. |
Policyholder |
Married Women |
Married Men |
Beneficiary |
The woman policyholder will be the sole authority to decide the beneficiaries. |
Wife, Children, or Wife and Children |
What Are The Tax* Benefits Of Life Insurance Under MWPA?
Life insurance plans purchased under MWPA Section 5 and Section 6 qualify for tax* deduction and exemption benefits. The annual premium paid for the term insurance will qualify for a tax* deduction benefit under Section 80C of up to ₹1.5 lakhs, and the payouts received will qualify for a tax* exemption under Section 10 (10D) based on the Income Tax Act 1961.
Conclusion
Section 5 and Section 6 of the Married Women's Property Act empower married women for financial security. They offer financial protection to married women against the burden of their husband's liabilities, creditors, and family financial disputes.
The key difference is that Section 5 MWPA allows married women to purchase life insurance plans on their behalf and designate the beneficiaries, and according to Section 6 MWPA, married men can purchase a life cover to secure the financial needs of their wives and children.
