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-i...r-legal-heirs/