Section 77 — Trusts Act 2019: Application of insurance money for loss or damage of trust property

77 Application of insurance money for loss or damage of trust property (1) This section applies if— (a) a trustee or a beneficiary receives or is entitled to receive money under an insurance contract against the loss of or damage to trust property ( insurance money ); and (b) the insurance contract has been arranged— (i) under the terms of a trust; or (ii) under a statutory or other power; or (iii) in performance of an agreement, or of a statutory or other obligation; or (iv) by a life tenant who would be liable for damage or loss to the property. (2) If a beneficiary is entitled to receive insurance money, the beneficiary must— (a) take reasonable steps to recover and receive the money; and (b) pay the money received less any recovery costs to the trustee or, if there is no trustee capable of giving a discharge for the money, to the Crown under section 149 . (3) The trustee must hold the insurance money in trust on the same terms and subject to the same powers and provisions as (or those corresponding as nearly as possible to) those to which the lost or damaged property is subject. (4) The trustee may apply the insurance money (or part of it) to rebuilding, reinstating, replacing, or repairing the lost or damaged property. (5) If the insurance money is held by the Crown, the court may direct that the money (or part of it) be applied to rebuilding, reinstating, replacing, or repairing the lost or damaged property. (6) This section does not affect any right a person may have to require the insurance money (or part of it) to be applied to rebuilding, reinstating, replacing, or repairing the lost or damaged property. Compare: 1956 No 61 s 25