This is the place where all of your questions on Life Insurance get answered! Pick
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The FAQs are meant for general reading only and should not be construed as legal advice. The answers provided would vary depending on the specifics of each case. FAQ contents may be subject to change from time to time on account of changes in laws and are not updated frequently. Please contact the company for specific information.
1. What is nomination?
Nomination is a right conferred on the holder of the policy of life insurance on his own life to appoint a person or persons to receive the policy moneys in the event of the policy becoming a claim by death.
2.
Who is a nominee?
The person designated by the policyholder to receive the proceeds of an insurance policy, upon the death of the insured.
3. Who can nominate?
Any policyholder, who is a major and the life insured under a policy can make a Nomination. Nomination is not effective in a policy taken on the life of another person.
4. When can nomination be done?
Nomination can be done at the inception of the policy itself. All that a policyholder has to do is to provide the details of the nominee in the proposal form. If a nomination was not done at the time of filing the proposal, it can be done at a later date either by an endorsement made at the back of the policy document or by making the endorsement of nomination on a piece of paper pasted on the policy.
5. How can nomination be changed?
Subject to the provisions contained in Section 39 of the Insurance Act, 1938, there are no restrictions on the policyholder regarding changing his nomination at any point of time, any number of times. The life-assured is free to change or cancel a nomination and make a fresh nomination any number of times during the currency of the policy. Transfer or assignment of a policy (except when it is made to an insurer in specified cases) automatically cancels a nomination.
6. What is successive nomination?
Successive nomination means that money should be paid to nominee A; failing him, to nominee B; failing whom, to nominee C, etc. Such a nomination is treated in favour of one individual in the order mentioned and is acceptable in law.
7. What are the details to be provided about the nominee(s)?
The following precautions are necessary at the time of filling in the proposal: Mention the Full Name, Address, age, relationship to yourself of the nominee.
Do not write the nomination in favour of wife and children as a class. Give their specific names and particulars existing at that moment.
If the nominee is a minor, appoint a person who is a major as an appointee giving his full name, age, address and relationship to the nominee. Signatures of appointee as token of consent are necessary on the proposal form.
