As you deal with the trauma of losing a loved one, applying for a life insurance claim may become even more daunting a task if you don’t know how to go about it? Usually, in the Indian family people refrain from sharing the life insurance details with their immediate family members which gets even a more complicated issue for the dependents. One of the most important aspects one should consider is the difference between the nominee and heir when it comes to insurance claims.
Remember, when it comes to a life insurance policy, there is a concept which is known as the beneficiary / the nominee. This provision was introduced in the Insurance Laws (Amendment) Act, 2015. If an immediate family member (parents, or spouse, or children) is made the nominee, then the proceeds will go to the intended person. Legal heirs will not have any claim on the money. Just in case the nominee is no more then the proceeds will go to the legal heirs.Remember, in the absence of a nominee, the legal heir can claim the insurance proceeds. “Apart from the claim intimation letter and other requisite documentation like death certificate, ID proof of the beneficiary, policy papers, discharge form (if any), post mortem report and hospital records (in case of unnatural death), the legal heir needs to submit the succession certificate issued by a competent court which establishes the right of the legal heir over the assets of the deceased policyholder, including the insurance proceeds. Just in case there are multiple legal heirs and only one is claiming the proceeds, then all other legal heirs need to agree and express their consent to the insurer for that. “The affidavit-cum-indemnity signed by all the legal heirs protects the insurer from similar and separate claims under the policy.
The legal heir can make a claim when there is no nomination in a life insurance policy any time before the maturity of the policy, or if the insured has not requested a fresh nomination in case of the death of the nominee or in case of death of the nominee after the claim is filed but before its settlement.
In case the deceased has more than one child and has not nominated all of them, a claim can be lodged only by the nominated child and the insurer shall pay the proceeds to the nominee only. Other children can stake claim to their shares by moving a competent court of law. So the next time you think about buying an insurance policy, better nominate someone and also try to make them understand what all is required under a life insurance claim. You never know life is so unpredictable these days.
Simplified Money Talks 
This article had been an eye opener. Thanks for sharing simple things in a crisp manner.
LikeLike