Nomination in Life Insurance Policy

Nomination in Life Insurance Policy

1. Why Nomination ?

(a) A policy holder is advised to nominate a person or a trust to whom the sum assured shall become payable in the event of his death, so as to save his legal heirs the trouble and expense of obtaining legal title to the sums payable under the policy.

(i) Provided that if any of the legal heir(s) or the nominee(s)/trustee of a policy holder has been charged with the murder of the policy holder, the policy money shall not be paid to him/her unless he/she is honorably acquitted of by the competent court of law.

(b) The holder of a policy of life assurance on his own life may when effecting or at any time before the policy matures for payment nominate the person or persons or religious trust to whom the money secured by the policy is desired to be paid in the event of his death.

2. Can Nomination change ?

( a) A nomination may, at any time before the policy matures for payment, be cancelled or changed by the assured by an endorsement or a further endorsement or a will, as the case may be, but the Fund will not be liable for any payment under the policy made bonafide by it to a nominee mentioned in the text of the policy or to be one nominated by an endorsement on the policy and registered in the records of the Fund unless notice in writing of any such cancellation or change has been received by the Postmaster General/ Head of Division prior to such payment.

3. What happen if nominee die before or after policy mature ?

(a) Where the policy matures for payment during the life time of the person whose life is insured or where the nominee or, if there are more nominees than one, all the nominees die before the policy matures for payment, the amount secured by the policy shall be payable to the policyholder or his heirs or legal representatives of the holder of a succession certificate as the case may be.

(b) Where the nominee or, if there are more nominees than one, a nominee or nominees survive the person whose life is insured the amount secured by the policy shall be payable to such survivor or survivors.

4. Can minor be nominated ?

(a) The holder of a policy of life insurance may, in any case where the nominee is a minor, appoint any person to receive the money secured by the policy in the event of his death during the minority of the nominee and communicate such appointment to the Postmaster General/Head of Division by forwarding the documents relating to such appointment or at the time of taking a policy. The consent of the appointee should be obtained at the same time as the appointment is made.

Note 1:- A nominee under a policy of the life insurance has a bare right to collect the money payable under the policy on the death of the insured and give a good discharge to the insurer. The nominee does not become the owner of the money payable under the policy and he/she is liable to make it over to the legal representative of the insured. Thus the nominee acts as a receiver only, subject to the provision of these Rules.

Nomination/Change Form :  Download

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