Death-linked personal accident policy proceeds must be assessed separately and not aggregated with the deceased's other estate assets.

A sum payable under a deceased insured's personal accident benefit policy, receivable only on death and not during lifetime, is treated as property included in the estate for duty purposes but as a separate estate for aggregation under section 34(3) of the Estate Duty Act. Because the deceased had no enforceable lifetime right or interest in the policy proceeds, the amount could not be clubbed with the other assets of the deceased for computing the dutiable estate. The principle applied is that death-linked policy money, where no lifetime interest exists, must be assessed separately as an estate by itself.

---

---

Issues: Whether the sum receivable under the deceased's personal accident benefit policy was includible in the principal value of the estate or was required to be treated as a separate estate under section 34(3) of the Estate Duty Act.

Analysis: The deceased had no enforceable right to receive the accident benefit during his lifetime; the amount became receivable only after his death by the nominee or legal heirs. On that footing, the sum could be included in the estate for duty purposes, but it could not be aggregated with the other properties of the deceased for computing the dutiable estate. The governing principle applied was that where the deceased had no lifetime interest in the money payable on death under the policy, the amount is to be assessed as an estate by itself.

Conclusion: The amount of Rs. 60,000 was to be treated as a separate estate and not clubbed with the other assets of the deceased; the appeal succeeded.

Ratio Decidendi: A sum payable under a personal accident policy, receivable only on the insured's death and in which the deceased had no lifetime interest, is not aggregatable with the other estate and must be assessed separately under section 34(3) of the Estate Duty Act.

---