The nominee is the person to whom the insurance claim amounts would be payable, in case anything unfortunate within the purview of the policy conditions happens to you. The policy is usually taken by you to benefit your family, nominate the persons who will have the welfare of your family in your absence; the usual preferences being spouse & children.
The nomination can be done at the start of the policy, by providing details of the nominee in the proposal form. However, if the nomination is not given at the beginning, it can be done at any time during the term of the policy. This nomination has to be effected by giving a notice in a prescribed form.
You may nominate even minors like your children, in which case you have to name another person who’ll have the welfare of the minor children, as an appointee
Nomination is a right conferred on the life insurance policyholder to appoint a person or persons to receive the policy monies in the event of the policyholder death.
Any policyholder, who is a major (age above 18) and the life insured under a policy, can make a nomination.
A nominee is the person designated by the policyholder to receive the proceeds of an insurance policy, upon the death of the insured.
Any One You can change his/her nomination at any time till the policy maturity date. All need to do is to inform insurance company about the change through the specified form.
Some details are necessary when filling in the proposal form.
They are
1. Full name of the nominee
2. Correct postal address
3. Age and date of birth nominee
4. Relationship between policyholder and the nominee.
While nomination is an authorisation to receive the policy monies in the event of death of the life assured, it does not give the nominee an absolute right over the money received to the exclusion of other legal heirs.
The nomination can be cancelled or revoked at any time during the lifetime of the policyholder at his/her will and pleasure or by a subsequent assignment.
According to provisions contained in Section 39 of the Insurance Act, 1938, there are no restrictions on the policyholder regarding changing his nomination at any point of time, any number of times. The life-assured is free to change or cancel a nomination and make a fresh nomination any number of times during the currency of the policy. Transfer or assignment of a policy automatically cancels a nomination.
Unique features of nomination
* Nomination in favour of wife and children as a class is not valid. Specific names of the existing wife and children should be mentioned.. So,please don't write only the nomination in favour of wife and children as a class. Give their specific names and particulars existing at that moment.
* If the nominee is a minor, appoint a person who is a major as an appointee giving his full name, age, address and relationship to the nominee. Signatures of appointee as token of consent are necessary on the proposal form.
The appointee will lose his/her status when the nominee will become major. If there is no appointee appointed of the minor nominee, the death benefits will not be paid to local guardians. In this case, death benefits will be paid to the legal heirs of deceased policyholder.
* At times, a minor is named as both nominee and beneficiary. Until the minor turns 18, a guardian nominee needs to safeguard the funds. If the guardian nominee dies, a new name has to be put up to avoid delays. Some insurance companies now offer to hold on to the funds on behalf of the minor. They would offer interest similar to the current rates offered by bank fixed deposits until the child turns 18.
* In life insurance policy, successive nomination facility available. It means that money should be paid to nominee A; failing him, to nominee B; failing whom, to nominee C, etc. Such a nomination is treated in favour of one individual in the order mentioned and is acceptable in law.
In the case of first endorsement of nomination the date of registration of nomination will be the date of receipt of the policy by the servicing office and in case of any other nomination or cancellation or change thereof, the date of receipt of the policy and/or of notice whichever is later, will be the date of registration.
* Any change or cancellation of nomination should be given in writing only by the Life Assured.
* Nomination under Joint life Policy can only be a joint nomination. Nomination in favour of a stranger cannot be made as there is no insurable interest and moral hazard may be involved.
* If there is more than one nominee of a single insurance policy, death benefits will be jointly paid to them or to survivors
* No nomination can be made under a policy financed from HUF funds.
* If nominee dies after death of policyholder but before receiving benefits, then money would be paid to legal heirs.
Role of nominee
* A nomination only bestows right to nominee for receiving all policy benefits after the death of policyholder.
* He/she will have no rights over the assets or death benefits unless that is written in the will of deceased policyholder. It means nominee is the only point of communication for insurance company after the death of policyholder.
* Nominee has no right to sue.
* Before the death of a policyholder, nominee will have no control on the policy.
* If there are creditors of the policyholder, then they will have the first right to claim the policy money after death of policyholder.
* Policyholder reserves rights to change the nominee.
Claim...! Claim...! Claim...!
When insurance companies hand over claim amounts, they insist on giving it to the assigned nominee.
The insurance company will release the payment to the nominee, unless informed of the complexities well in advance. If there is a will, the issue can be resolved, since a will supersedes any other claim.
When an insurance company would intervene and take decisions regarding whom the claim amount should be passed on to. When matters get complicated, wait for the civil courts to give their decision.
If there is no will, the claimant could move an interim order against the company, restraining it from releasing the claim amount. He/ she would then have to obtain a succession certificate from the court, proving the validity of the legal heir. However, this could easily take eight to nine months before one gets the final order.
There is not a will, subject to some conditions, Indian inheritance laws consider the wife, children and parents as legal heir. Each of them can make a claim to the amount.
The absence of a will or succession certificate can make the situation difficult when the nomination remains unchanged. The matter reaches the courts if there are more claimants.
Lastly insure that the nominees name is correctly incorporated in the policy bond.
The nomination can be done at the start of the policy, by providing details of the nominee in the proposal form. However, if the nomination is not given at the beginning, it can be done at any time during the term of the policy. This nomination has to be effected by giving a notice in a prescribed form.
You may nominate even minors like your children, in which case you have to name another person who’ll have the welfare of the minor children, as an appointee
Nomination is a right conferred on the life insurance policyholder to appoint a person or persons to receive the policy monies in the event of the policyholder death.
Any policyholder, who is a major (age above 18) and the life insured under a policy, can make a nomination.
A nominee is the person designated by the policyholder to receive the proceeds of an insurance policy, upon the death of the insured.
Any One You can change his/her nomination at any time till the policy maturity date. All need to do is to inform insurance company about the change through the specified form.
Some details are necessary when filling in the proposal form.
They are
1. Full name of the nominee
2. Correct postal address
3. Age and date of birth nominee
4. Relationship between policyholder and the nominee.
While nomination is an authorisation to receive the policy monies in the event of death of the life assured, it does not give the nominee an absolute right over the money received to the exclusion of other legal heirs.
The nomination can be cancelled or revoked at any time during the lifetime of the policyholder at his/her will and pleasure or by a subsequent assignment.
According to provisions contained in Section 39 of the Insurance Act, 1938, there are no restrictions on the policyholder regarding changing his nomination at any point of time, any number of times. The life-assured is free to change or cancel a nomination and make a fresh nomination any number of times during the currency of the policy. Transfer or assignment of a policy automatically cancels a nomination.
Unique features of nomination
* Nomination in favour of wife and children as a class is not valid. Specific names of the existing wife and children should be mentioned.. So,please don't write only the nomination in favour of wife and children as a class. Give their specific names and particulars existing at that moment.
* If the nominee is a minor, appoint a person who is a major as an appointee giving his full name, age, address and relationship to the nominee. Signatures of appointee as token of consent are necessary on the proposal form.
The appointee will lose his/her status when the nominee will become major. If there is no appointee appointed of the minor nominee, the death benefits will not be paid to local guardians. In this case, death benefits will be paid to the legal heirs of deceased policyholder.
* At times, a minor is named as both nominee and beneficiary. Until the minor turns 18, a guardian nominee needs to safeguard the funds. If the guardian nominee dies, a new name has to be put up to avoid delays. Some insurance companies now offer to hold on to the funds on behalf of the minor. They would offer interest similar to the current rates offered by bank fixed deposits until the child turns 18.
* In life insurance policy, successive nomination facility available. It means that money should be paid to nominee A; failing him, to nominee B; failing whom, to nominee C, etc. Such a nomination is treated in favour of one individual in the order mentioned and is acceptable in law.
In the case of first endorsement of nomination the date of registration of nomination will be the date of receipt of the policy by the servicing office and in case of any other nomination or cancellation or change thereof, the date of receipt of the policy and/or of notice whichever is later, will be the date of registration.
* Any change or cancellation of nomination should be given in writing only by the Life Assured.
* Nomination under Joint life Policy can only be a joint nomination. Nomination in favour of a stranger cannot be made as there is no insurable interest and moral hazard may be involved.
* If there is more than one nominee of a single insurance policy, death benefits will be jointly paid to them or to survivors
* No nomination can be made under a policy financed from HUF funds.
* If nominee dies after death of policyholder but before receiving benefits, then money would be paid to legal heirs.
Role of nominee
* A nomination only bestows right to nominee for receiving all policy benefits after the death of policyholder.
* He/she will have no rights over the assets or death benefits unless that is written in the will of deceased policyholder. It means nominee is the only point of communication for insurance company after the death of policyholder.
* Nominee has no right to sue.
* Before the death of a policyholder, nominee will have no control on the policy.
* If there are creditors of the policyholder, then they will have the first right to claim the policy money after death of policyholder.
* Policyholder reserves rights to change the nominee.
Claim...! Claim...! Claim...!
When insurance companies hand over claim amounts, they insist on giving it to the assigned nominee.
The insurance company will release the payment to the nominee, unless informed of the complexities well in advance. If there is a will, the issue can be resolved, since a will supersedes any other claim.
When an insurance company would intervene and take decisions regarding whom the claim amount should be passed on to. When matters get complicated, wait for the civil courts to give their decision.
If there is no will, the claimant could move an interim order against the company, restraining it from releasing the claim amount. He/ she would then have to obtain a succession certificate from the court, proving the validity of the legal heir. However, this could easily take eight to nine months before one gets the final order.
There is not a will, subject to some conditions, Indian inheritance laws consider the wife, children and parents as legal heir. Each of them can make a claim to the amount.
The absence of a will or succession certificate can make the situation difficult when the nomination remains unchanged. The matter reaches the courts if there are more claimants.
Lastly insure that the nominees name is correctly incorporated in the policy bond.
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