An insurance policy can be claimed in the absence of a nominee. In case the legal heir is not the nominee, the policy can be claimed.
Claiming a life insurance policy is not an easy process. After the death of the policyholder, when it comes to making an insurance claim, the first thing to do is to know about the nominee. But, do you know that insurance policy can be claimed if there is no nominee. In case the legal heir is not the nominee, the policy can be claimed.Also Read: Hina Khan dances on Kriti Sanon’s song, shows fans ‘Param Sundari’ avatar
Know the rule of inheritance in the insurance policy
The insurance policy is considered to be the personal ownership of the deceased policyholder. The legal heirs have the right over the assets of the deceased policyholder. But there is a rule of Beneficial Nominee in life insurance. This provision has been added to the Insurance Laws (Amendment) Act, 2015. Under this, if a family member (parent, spouse or child) is made a nominee, then he gets the sum insured. In such a situation, the legal heirs will not have any claim on this money. But, if the Life Assured has not made a nominee, or the nominee also dies, then the legal heir can claim the insurance benefit.Also Raed: For how long does EPFO pay interest on your PF account? know here
Who is the nominee?
The nominee is the person who, after your death, transfers the money received from the insurance company, bank FD and property to your legal heirs. He is not the owner of that amount by law, it is just a trust. In simple words, a nominee is like a caretaker, who transfers our deposits to our loved ones when we are not there.Also Read: Employee Pension Scheme: One decision and pension limit will increase from ₹15000 to ₹25000? read details
Nominee Rules
- If the nominee is minor then it is necessary to appoint a guardian.
- Can appoint more than one nominee.
- Nominee can be changed multiple times.
- The nominee is not always entitled to the property.
- It is necessary to make a will even after making a nominee.
- If there is a nominee but not a will, then the property is divided according to the law.
- In which case the legal heir gets the claim
In the absence of the nominee, the legal heir has this right. However, for this, the legal heir has to prove that he is the legal heir by giving a number of documents. They have to submit death certificate, beneficiary identity card, policy papers, discharge form in case of hospitalization, post mortem report, hospital records in case of unnatural death.Also Read:Who can take LIC new Arogya Raksha Policy, its benefits, features and eligibility
Apart from this, the legal heir also has to submit a succession certificate issued by a court. This would prove that after the deceased policyholder, his property is the right of the legal heir.
What if there is more than one legal heir?
If there is more than one heir and only one of them makes a claim, then it is also necessary to take consent from all the legal heirs. For this an affidavit-cum-indemnity bond has to be signed, in which all the legal heirs have consent. After signing it, all the legal heirs cannot make separate claims with the insurance company.Also Read: Bad News: Rules on maturity of ulip have been changed by government
Legal heirs can claim even if no nominee has been registered before the policy maturity. If the policyholder has more than one child and they have not nominated all, then only the nominee will have the right to claim on behalf of the insurance company. However, other children can go to the court and claim through the legal route.