Lic nominee

Nominee is only a trustee who receives the money on behalf of the legal heirs. Your brother in law is the legal heir of your sister as per the hindu succession act. So at this stage he is entitled to get the amount.

precisely advised by Adv. Archana..

Hello Sir,

My father died in the month of Dec 2007 and he had two Life insurance Policies worth 1 lac and 50000 INR.

He had paid the premiums for the first 3 yrs regularly but due to some circumstances he couldnt pay further. When we went to LIC office for death claim of the policy. we came to know the policy had been mortgaged to some other company. My father hadnt informed of such thing to us. We enquired and searched a lot for the company for 2 yrs and finally informed LIC office that the company is liquidated and please give us our death claim.

But the LIC office said now the case would be conducted in Court. Some agents say we are fooled by the LIC.

And all the branch offices give different answers for death claim.

I wrote to Ombudsman about it, but no positive reply.

I consulted one LIC agent, as per him, I am not liable to receive the amount as the Policy was not inforce when your father died. (LIC start date was in feb-97 for both policies)

Please advise as we are in need of money now and this is one of option where we can get from.

As the LIC is esp for loved ones of the deceased, how can LIC office be so coldblooded in not helping us out.

They should pay us the death claim. :-(

Regards

Data insufficient to come to a conclusion.  However, I am giving below general rules applicable for this case.  If the premium had been paid for atleast three years and subsequent premiums not paid, then the paid up value will be paid to the life assured or assignee, if the pollicy matures or to nominee or assignee, if the policyholder dies (except in the case of term assurance policies where no maturity is available and no death claim is payable if the policy is in lapsed condition since it does not acquire any paid up value).  If the policy has been assigned, as given in the case, then the right to get money vests with the assignee and not the nominee.  If policy details are provided, it can be delved upon deeply.

Thankyou for the reply

Here are further details of the policy

One policy - Plan 14 Term 20yrs

Other one - Plan 75 Term 20yrs

Premiums paid for first 3 yrs regularly.

Policy start date Feb-97

Policy Maturity date - Mar-17

Death of insured(father) - Dev 2007

@ Sujoy,

Ms. Archana and Mr. Kiran Kumar have given valuable advice. Kindly follow it.

The claimant has to fill up the Death Claim form, declare reason of death/provide hospital-police record etc and submit it to Life Insurance Company. Life Insurance Company can inform the claimant its decision to conduct investigation in one month post claim and need to complete its investigation in 6 months. Post Mortem/Forensic reports shall be looked into in case the death is not natural. If the death turns out to be murder the scene shall change and LIC shall take a call accordingly. You are within your rights to bring the facts of the death and case in the knowledge of LIC.

In the case of a female dying intestate section 15 comes into operation:
15. General rules of succession in the case of female Hindus.
          (1) The property of a female Hindu dying intestate shall devolve according to the    
          rules set out ill section 16,-
          (a) Firstly, upon the sons and daughters (including the children of any pre-deceased    
           son or daughter) and the husband;
          (b) Secondly, upon the heirs of the husband;
          (c) Thirdly, upon the mother and father;
           (d) Fourthly, upon the heirs of the father; and
          (e) Lastly, upon the heirs of the mother.
           (2) Notwithstanding anything contained in subsection (1),-
          (a) Any property inherited by a female Hindu from tier father or mother shall
          devolve, in the absence of any son or daughter of the deceased (including the
          children of any pre-deceased son or daughter) not upon the other heirs referred to   
          in sub-section (1) in the order specified therein, but upon the heirs of the father;   
          and
         (b) Any property inherited by a female Hindu from tier husband or from her father-  
         in-law shall devolve, in the absence of any son or daughter of the deceased   
         (including the children of any pre-deceased son or daughter) not upon the other   
         heirs referred to in subsection (1) in the order specified therein, hill upon the heirs
         of the husband.

AGAIN, YOU HAVE NOT MENTIONED WHETHER THE POLICY HAS BEEN ASSIGNED OR NOT.  IF YOU CAN GIVE THE POLICY NUMBERS, THE AVAILABILITY OF THE DETAILS THROUGH ONLINE CAN BE CHECKED.

The policy has been assigned.

The nomination for the policies is my mother.

But on the database at LIC office it shows some company name.

Please let me know.

IF THE POLICY STANDS ASSIGNED, NOMINATION STANDS CANCELLED.  SECTION 38 OF INSURANCE ACT 1938 STATES THAT THE LIFE ASSURED (POLICYHOLDER/PROPOSER) OR THE NOMINEE HAS NO RIGHT OVER THE POLICY WHATSOEVER MAY BE, IN CASE OF ASSIGNMENT. IN ASSIGNMENT, THERE ARE TWO TYPES - ABSOLUTE AND CONDITIONAL.  IN THIS CASE SINCE THE ASSIGNMENT HAS BEEN MADE IN FAVOUR OF A COMPANY, IT CAN BE ONLY ABSOLUTE ASSIGNMENT.  HENCE THERE IS NOTHING YOU CAN DO TO GET THE POLICY MONEY.  THE ASSIGNEE CAN LODGE THE CLAIM AND OBTAIN THE MONEY. 

@ Shwetali,

Mr. Gupta has given insights and valuable information. Kindly follow the advice.

The policy document issued by LIC is descripttive and covers almost all points, including conditions in which policy shall acquire a paid up value and formulae for calculating paid up value.

Assignment in case of legal heirs/blood relation can be done on the strength of statement of policy holder e.g. out of love and affection, however in case of assignment in favor of a company a financial pronote towards financial consideration is required. LIC has endorsed the assignment on the policy document and thus must be in possession of financial pronote etc.

In your case company is liquidated and life insured i.e. your father is dead and now your mother (widow) is legal heir along with son mother daughter of your father etc.

You may try and bring the facts in the knowledge of BM/Div. Manager/ Chairman by letter under proper acknowledgment, and demand the payment in the light of facts. If no reply is supplied to you can adopt the RTI route. The idea is to make LIC reply to you in writing.

If the policy has acquired a paid up value and amount is worth then you can contemplate to approach a court of law.

EVEN IF THE COMPANY GETS LIQUIDATED, THE NOMINEE DOES NOT STAND TO GAIN IN ANY WAY.  EITHER THE PAID UP VALUE WILL BE PAID TO THE COMPANY OR TO THE LIQUIDATOR OR NOBODY ELSE GETS IT.  IT WILL BE TAKEN TO WRITTEN BACK ACCOUNT, IF THE CLAIM COULD NOT BE SETTLED.  EVEN ON THE BASIS OF EX-GRATIA CLAIM, THIS CANNOT BE PAID TO THE NOMINEE, WHICH PLEASE NOTE.  YOUR FATHER WOULD HAVE ASSIGNED THE POLICY FOR SOME VALUABLE CONSIDERATION.  AND HENCE THE QUESTION OF AGAIN GETTING ANOTHER CLAIM UNDER THE POLICY IS RULED OUT, UNLESS OTHERWISE THE ASSIGNEE ASSIGNS THE POLICY IN FAVOUR OF NOMINEE. 

Dear Sir,

                 Generally LIC will Settle the Death Claim to  appointed Nominee only, As per Hindu Succession Act husband has right over wife"s property  (or ) Money, if any objection or Claim  arised by any of the legal heir of deceased person, LIC will direct  them to Court for Further Decision. So if there is no Objection LIC will Settle the Death cliam amout to the Nominee only.

THE QUESTION OF NOMINEE CLAIMING THE MONEY IN THE EVENT OF ASSIGNMENT DOES NOT ARISE AND THE COURTS CANNOT INTERFERE IN IT.  ASSIGNMENT IS NOTHING BUT TRANSFER OF RIGHT ON THE POLICY TO SOMEBODY ELSE AS PER TRANSFER OF PROPERTY ACT.  THE LIFE ASSURED, ON ASSIGNING THE POLICY LOSES HIS RIGHT WHATSOEVER MAY BE ON THE POLICY AND THE NOMINATION STANDS CANCELLED.  ONLY THE ASSIGNEE HAS THE RIGHT TO CLAIM THE MONEY - BE IT EITHER MATURITY CLAIM OR SURRENDER OR LOAN OR DEATH CLAIM, WHATEVER IT MAY BE.  THERE IS NO POINT IN APPROACHING THE COURT.  IT WILL BE WASTE OF TIME AND ENERGY.

 Mr. Gupta has clarified the matter in its right prespective. Assignement overules nomination.

Company has been liquidated and company has not claimed the death claim.

It is felt that you may approach and plead your case with promoters of the comapny and they may drop the claim and cancell the assignement in your favor.

They may stake their claim if noticed by lawyer or court.

Valuable advice of learned experts/members is sought.