LIC insurance claim settlement
vinod
(Querist) 10 June 2010
This query is : Resolved
My brother-in-law expired last year in a accident leaving behind my sister and 3 year old son. He had a policy in LIC and had payed premium for 10years for which the nominee was his mother. We came to know about existence of the policy only when we recived the premium intimation letter from LIC recently.
But when we checked with the officers , the claim was already settled (~1.4 lakhs) and the full amout was payed to my sister's mother in law. This was done without my sister's notice and are refusing to give money. The share of the money would have really helped my sister and her son .
Could you please let me know if there are any provisions to get a share of the amount from LIC office or through legal action. If so could you please give more information on the process of action in either of the case.
Devajyoti Barman
(Expert) 10 June 2010
As your sister's mother in law was the nominee , the LIC has done the right thing by giving the money to the mother of the insurer and now you can not do anything against the LIC.
Now the nominee is the mere custodian/ trustee of the property and he/she is duty bound to deliver the property to its rightful owner. In your case upon the insured amount both the mother, widow and children of the deceased have got equal share and hence now they can easily file a civil suit for recovery of the share and if necessary for criminal misappropriation of property.
vinod
(Querist) 10 June 2010
Thank you for the information.
adv. rajeev ( rajoo )
(Expert) 11 June 2010
file suit for partition claiming the right in the LIC amount.
mahendrakumar
(Expert) 11 June 2010
yes, LIC has no role now in your case as the claim is paid to the nominee.
so follow what Mr.Barman suggests.
vinod
(Querist) 11 June 2010
Thank you.
Surrender K Singal
(Expert) 11 June 2010
In the mean time, be careful to make sure that the amount remains available for distribution !
vinod
(Querist) 13 June 2010
Thank you.
G. ARAVINTHAN
(Expert) 14 June 2010
Nominee is the party who can claim the instrument or its values on the expiry of the instrument in the absence of the Peron nominates
