Nomination is the process of identifying a person to receive the policy money in the event of the death of the Policyholder.
Nomination can be done at the inception of the Policy by providing details of nominee in the proposal form. However, if the nomination is not given at the beginning, the policyholder can give it at a later date.
This nomination has to be effected by giving notice in a prescribed form to the insurer and getting it endorsed on Policy Bond.
Change of Nomination can be done by the Policyholder any time during the term of the Policy and any number of times. For this, the policyholder has to give a notice in a prescribed form to the insurer and get it endorsed at the back of the Policy. Further, Nomination can be removed any time by the Policyholder without giving prior notice to the Nominee.
Nomination can be done only by a policyholder, who is a major, and on a policy on his own life.
Under Nomination, the Nominee gets only the right to receive the policy money in the event of the death of the Policyholder.
Nomination does not pass on the property in the Policy.
If Nominee dies when the Policyholder is still surviving then the nomination would be ineffective.
Nomination has no effect if the Policyholder is surviving.
If Nominee dies after the death of the policyholder but before receiving policy money, then also Nomination becomes ineffective and only the Legal Heirs of the Policyholder can claim money.
In the case of Children's Policies, Nomination is not done until the Child becomes a major. Nomination is governed by Section 39 of Insurance Act 1938.
Individuals
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