Hi,
I am J.S.Rao, I want some clarification regarding nominee rights with respect to insurance amendment act 2015. Last year my brother's elder son expired due to ill health. My brother\'s son was holding 2 LIC policies with nominee as my brother. These policies were taken before marriage and nomination has not been changed even after marriage. My brother approached LIC and obtained the issuance claims. It is understood that with reference to the concept of 'beneficial nominee' as per new insurance amendment act 2015, only Nominee will receive the insurance amount and other legal heirs will not have any claim, since my brother is a beneficial nominee. Now my brother's daughter in-law claiming her portion of share along with share of her two children, as legal heirs with reference to Hindu succession act. I want to know that, in this case, whether the Hindu succession law will be applicable or not ?. My understanding is, as per new insurance amendment act 2015, the appointment of nominee is like a WILL, hence Hindu succession law will not applies as will (nominee) is available. I request you to please clarify.
1 Answers
Dear Mr Rao,
So sorry to hear of your family's recent loss.
Beneficial nominees are direct dependents of the policy holder i.e., Spouse, children or parents.
In this case, it is your Brother (Parent). As, your brother is a beneficial nominee of the two LIC policies, I too believe that the death benefit will be paid to your brother alone and other legal heirs (wife ie Daughter-in-law) will not have a claim on the money.
You may also kindly check with a lawyer in this regard.
Suggested reading :
https://www.relakhs.com/nominee-legal-heir-will-importance/
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