Mahesh has brought a life insurance policy with a critical illness rider. He has made absolute assignment of the policy in favor of khan. Mahesh suffers a heart attack and there is a claim of Rs.50,000 under the critical illness rider. To whom will the payment be made in this case?

A. Mahesh

B. Karan

C. The payment will be shared equally by Mahesh and Karan

D. Neither of the two because Mahesh has suffered the heart attack but the policy is assigned in the favor of Karan

Answer: Option B

Solution(By Examveda Team)

Mahesh has brought a life insurance policy with a critical illness rider. He has made absolute assignment of the policy in favor of khan. Mahesh suffers a heart attack and there is a claim of Rs.50,000 under the critical illness rider. The payment be made to Karan in this case.