Claim of legal heirs on the insurance money

[Anki]

Hi! I want to clear doubt about a life insurance policy in the name of my grandfather who died in 1974 and my grand mother being nominee got the whole insurance amount. My father was a minor at that time and no such amount had been spent on my father. Whole of that amount was kept by my grandmother & elder uncle in their joint name as a fixed deposit. What are the rights of my father being legal heir in respect of that insurance claim today. Please guide

[Rahul]

Previously, the nominee is the one who is designated by the policyholder to receive the proceeds of an insurance policy upon the death. A nominee is merely a trustee, who must distribute the assets to the legal heirs named in a will, or as per succession laws.

Unless a succession certificate has been granted and claim thereunder has been lodged before payment to nominee, the Insurance Company is under legal obligation to pay nominee but nominee is trustee of the amount beyond her share which heirs can claim from her.

Because you did nothing at that time, it may be a legal matter if you want to challenge it now.

Read more in details - http://www.policywala.com/who-will-inherit-your-insurance-policy-proceeds-nominee-or-legal-heirs/

[Rahul]

Please also note that as per Insurance Laws (Amendment) Act, 2015, following new changes has been brought:

1. In case nominee(s) survive the person whose life is insured, the amount secured by the policy shall be paid to such survivor(s).

2. Where the policyholder whose life is insured nominates his
a. parents or
b. spouse or
c. children or
d. spouse and children
e. or any of them

the nominees are beneficially entitled to the amount payable by the insurer to the policyholder unless it is proved that policyholder could not have conferred such beneficial title on the nominee having regard to the nature of his title.

3. If nominee(s) die after the policyholder but before his share of the amount secured under the policy is paid, the share of the expired nominee(s) shall be payable to the heirs or legal representative of the nominee or holder of succession certificate of such nominee