Notwithstanding anything in Schedule 1 to this Act and subject to section 72 of this Act and sub-paragraph (3) below, among the purposes for which a registered friendly society may issue policies of insurance shall be included insuring money to be paid to a member on the duration for a specified period of the life of any of the persons mentioned in sub-paragraph (2) below where, subject to the provisions of any Order in Council under section 7 of the [1948 c. 39.] Industrial Assurance and Friendly Societies Act 1948, the life in question is that of a person who at the time of the proposal is ordinarily resident outside the United Kingdom and the Isle of Man ; and such a policy may include provision for the payment of money in the event of the death of that person before the expiration of the specified period.

The persons referred to in sub-paragraph (1) above are a parent, child, grandparent, grandchild, brother or sister of the member in question.

No such society shall insure or pay on the death of any person under such a policy any sum of money exceeding a reasonable amount for funeral expenses.

The issuing of such policies by a collecting society shall, unless the premiums in respect thereof are payable at intervals of two months or more, be treated as part of the industrial assurance business of the society.

This paragraph and so much of paragraph 4 below as relates to this paragraph shall in their application to collecting societies be construed as one with the Industrial Assurance Acts 1923 to 1968.