NEW DELHI: The Supreme Court on Thursday said that insurance policy taken by parents or guardians for disabled child should be allowed to mature after 55 years of age of proposer against the present practice of giving lump sum payment to disabled dependent only in the event of death of the guardian.

A bench of Justices A K Sikri, Ashok Bhushan and Abdul Nazeer said that there could be “harsh cases” where handicapped persons may need the payment on annuity or lump sum basis even during the lifetime of their parents/guardians and asked the Centre to examine the issue.

The court also asked the legislature to consider amendments in Section 80DD of Income Tax Act where the exemption is given only to those investment made by a guardian for insurance policy which provides payment to disabled person only after the death of the proposer. The court said that judiciary cannot take upon itself the task to amend the law and it is for the Parliament to examine it… (ET Health)