Nomination in a Life Insurance policy

Nomination is a right conferred by the section 39 of the Insurance Act 1938, on the “holder of a policy of life assurance on his own life” to appoint a person/s to receive the policy moneys in the event of the policy becoming a claim by the assured’s death. The term “holder of a policy” ordinarily means a proposer or life assured or an absolute Assignee who has right, title & interest in the policy. But if the holder of the policy is not life assured himself, he cannot effect a valid nomination under the policy. In other words, if holder of the policy is life assured, then only he can effect valid nomination under the policy. In other cases, where proposer and life assured are different persons i.e. policies taken during minority of life assured OR policies taken by father on major child, nomination is not allowed. In case policy is absolutely assigned in favour of assignee, though he is a holder of the policy, Assignee cannot effect valid nomination under the policy. This is because, he is not life assured under the policy.

View Comments

Share
Published by
Dipti R Barik

Recent Posts

7 steps to register NEFT details in LIC online

Life Insurance Corporation of India regularly adds more services to its online portal, which are…

5 months ago

LIC’s Amritbaal (874), a new child plan by LIC

Life Insurance Corporation of India has decided to launch a new children's plan, Amritbaal (Plan…

9 months ago

LIC’s New ULIP Plan Index Plus (Plan No. 873)

LIC of India has launched a new ULIP plan named Index Plus, Plan No. 873.…

9 months ago

LIC’s New Plan Jeevan Dhara 2 (Plan No. 872)

LIC has announced to launch of a new pension product with the name of LIC's…

10 months ago

आधार सक्षम भुगतान प्रणाली (एईपीएस): विशेषताएं, लाभ सीमाएं

आधार का उपयोग करके बैंकिंग सुविधा को नियोजित करने के लिए आधार सक्षम भुगतान प्रणाली…

11 months ago

LIC’s New Plan Jeevan Utsav (Plan No. 871)

Life Insurance Corporation of India has decided to launch a new insurance plan named Jeevan…

11 months ago

This website uses cookies.