Nominee: Will only the nominee get the benefit after death in insurance? HC's decision becomes a precedent..

In an important decision, the Karnataka High Court has said that if the legal heirs of the policyholder make a claim, then the person nominated in the insurance policy will not have full rights over the insurance benefits. The court also clarified that Section 39 of the Insurance Act, 1938 relating to the nominee provision does not nullify personal succession laws like the Hindu Succession Act, 1956.

Justice Anant Ramnath Hegde has given this decision in the case of Neelavva alias Neelamma vs Chandravva alias Chandrakala alias Hema and others. There was a dispute between these parties regarding the right of claimants for insurance payments. Justice Hegde said in his decision that the person nominated in the insurance policy can get insurance benefits only if the legal heirs do not claim them. If a legal heir claims his right, then the claim of the nominee should be subject to personal succession laws.

This decision of HC became a precedent.

A person involved in this case had named his mother as the sole person in two insurance policies before his marriage. Even after his marriage and the birth of his child, he did not change the nomination details. After the death of the person in the year 2019, a legal battle started between his mother and wife over the payment of the insurance amount.

The High Court upheld the decision of the lower court and ruled that the mother, wife, and child of the deceased person would get one-third of the insurance benefits.

This decision will be beneficial in other disputes.

If there is any such dispute related to the insurance policy in someone's family, then the decision of the Karnataka High Court will help do justice to it. Let us tell you that the insurance company talks about giving the benefit of the policy to the nominee only, but now this will not happen.

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