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TOO LATE: Mrs Prabhakaran found that her late

husband's insurance money had already been paid

to her father-in-law. -- NG SOR LUAN

 

THE widow who lost her husband in the Tampines flat blaze earlier this year showed up to collect about $54,000 of his insurance money but was shocked to learn that her estranged father-in-law had already claimed the cash.

Mrs Gerardine Prabhakaran, whose husband was killed in the blaze he started during a domestic dispute in January, was unable to stake her claim ahead of her father-in-law as she had been grieving and was occupied with caring for one of her three sons who was injured in the fire and remains bed-ridden.

At the time of the fire, the couple's marriage was on the rocks, and Mrs Prabhakaran relationship with her in-laws had subsequently broken down over claims of infidelity.

The disputed money comes from the Dependants' Protection Scheme (DPS), an insurance policy for Central Provident Fund (CPF) members. The tussle, which may end up in the courts, also highlights an apparent anomaly in this insurance scheme, which surfaced after it was privatised last September.

When the scheme was administered by the CPF, whoever was nominated by the deceased was entitled to the funds. But since privatisation, all DPS claims are administered by two firms, NTUC Income and Great Eastern Life Assurance, under the Insurance Act.

The old CPF nomination procedure no longer applies and, and under the Act, claims may be paid out to any 'proper claimant', said Great Eastern, which handled the Prabhakaran claim. The claimant can be a spouse, parent, child, sibling, nephew or niece or the executor named in the will of the person whose life was assured, the firm added.

Great Eastern said the money was paid to the dead man's father, Mr V. Krishnan, as he qualified as a claimant and had provided the death certificate and other relevant claim documents.

But when it paid the sum, the company said it had informed Mr Krishnan that the 'proceeds were to be used for the benefit of the deceased's estate'.

Mrs Prabhakaran, who is unable to work as she has to look after her young sons full-time and has no income of her own, is now seeking assistance from the Legal Aid Bureau to recover her money from her father-in-law.

Lawyers yesterday told The Straits Times the DPS scheme needed to be fine-tuned.

Goodwins Law Corporation director Chua Wee Lee said the intention behind the law was good in enabling funds to be disbursed to those in immediate need, but perhaps the claimants specified under the Act were 'too wide'' a category.

Yesterday, Mr Krishnan said he had used the insurance money to cover funeral expenses and to help repay loans he had taken five years ago to settle his son's debts.

'I have nothing to gain,' he said. 'I did not know the DPS monies was meant for the estate.'

He said he has offered, through the insurance company, to repay the money to his daughter-in-law with a lump sum of $14,000 and the balance in $2,000 monthly instalments.

But Mrs Prabhakaran, 35, refused the offer as she said the money was needed urgently for her son's medical treatment.

Mr Krishnan said he is leaving the matter to his lawyer.

vijayan@sph.com.sg