HC: In the insurance policy, the nominee will not be entitled to full money. Legal successors can also claim insurance policy money. A similar case came to light in which the son took an insurance policy before marriage, in which the mother was made a nominee. After the death of the person, there was a dispute between the mother and wife about the insurance claim. In which the Karnataka High Court has given an important verdict that in the insurance policy, the nominee person will not have full rights on the insurance amount if the legal successor (entitled) of the deceased claims.
What did the court say?
The court clarified that Section 39 of the Insurance Act, 1938 does not mean that it can eliminate laws like Hindu Succession Act, 1956. The decision has come in Neelvva alias Neelma vs Chandravva alias Chandrakala alias Hema and other cases. In this case, there was a dispute about the real entitlements of the insurance amount.
Legal officer can claim
Justice Anant Ramnath Hegde said that the nominee person (nominee) in the insurance policy would only get the benefit when the legal successor of the deceased does not claim. If the successor like wife, children or parents claim, the insurance amount will be divided according to the succession laws.
What was the whole matter
In this case, a person made his mother a nominee in his insurance policy before marriage. Even after marriage and birth of a child, he did not change the nominee. When he died in 2019, a dispute started between his mother and wife over the insurance amount. The High Court justified the decision of the lower court and said that the deceased’s mother, wife and child would get one-third of the insurance amount. It is clear from this decision that in the insurance policy, the nominee person will not get the entire amount, but also the legal heirs will have the right to him.
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