Nomination FAQs

A nominee is the person who receives the proceeds of your life insurance policy in case of your untimely death.
When you appoint a person as your nominee, the nomination enables your nominee to receive the policy proceeds in the event of your untimely death without necessity of producing any legal evidence of title to your estate. You may nominate any person as your nominee.

When you nominate your:

  1. Parents or
  2. Spouse or
  3. Children or
  4. Spouse and children
  5. Or any of them

Such person/persons shall be beneficially entitled to the amount payable, unless you are legally incapable of conferring this beneficial title.

Nomination is allowed only for self-proposed policies where the proposer and life assured are the same person.
You may appoint a nominee while submitting the proposal by providing nominee details in the proposal form.
Even if the proposal has already been submitted without nominee details, you can write a letter to the insurer stating that you desire to appoint a nominee and provide nominee details. Once a policy has been issued, you can add a nominee by an endorsement on the policy and notifying the insurer about the endorsement.
Yes. But when you are appointing a minor your nominee, you will also have to appoint an appointee.
An appointee may be appointed to receive the policy moneys in case of death of the life assured during the minority of the nominee. The appointee should be major person.
Yes. The Insurance Act provides that where there are more nominees than one, the policy money will be payable to them jointly or survivor(s) of them.
If the nominee dies before the policyholder, the proceeds are payable to policyholder or his heirs or legal representatives or holder of succession certificate.
If a beneficiary nominee or one of your beneficiary nominees, die after your demise but before his share of the amount under the policy is paid, the share of such nominee(s) shall be payable to the heirs or legal representative of such nominee or holder of succession certificate of such nominee(s).
In such cases the nominee(s) of the policyholder shall be entitled to the proceeds of his policy.
A nomination may be cancelled or changed by an endorsement or by a will also. However, notice of such cancellation or change should be delivered to insurance company.
You should send a notice in writing of any change or cancellation of nomination to the insurer. Otherwise, the insurer will not be liable if it makes a payment to the person registered as a nominee as per its records.
Nomination under MWP policies and policies financed from HUF funds is not allowed.

When you conditionally assign your policy, it shall cancel the nomination till the time the assignment is in force. When you absolutely assign your policy, it shall automatically cancel the nomination.

Exceptions: the nomination shall not be cancelled when you assign your policy:

  1. To the insurer; or
  2. For taking a loan; or
  3. Against security; or
  4. On reassignment of your policy after repayment.

In these cases, the nomination will get cancelled to the extent of the interest of the insurer or assignee in the policy. The nomination will get revived on repayment of the loan.

Section 39 of the Insurance Act governs the nomination provisions.
You can make a fresh nomination or change your nominee at any time before the maturity of your policy.
If nomination is made at the time of issuance of policy, no fee is paid. However, for making changes in the registered nomination, we may charge a nominal fee.


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