You and your lawyer would know best about the finer details of your case.
NO comment is being made on the strategy or advice of your lawyer.
Given below is the heartfelt opinion only on right of legal heir over nominee. For DV case yopu may seek advice from your lawyer and learned experts/members of the LCI.
You may find the attachments useful.
Valuable advice of learned experts and members is sought.
You should have staked your claim with LIC irrespective of nomination in life insurance policy of your husband which was purchased by your husband before your marriage.
If you had approached LIC in person, on phone, in writing you could submit the minutes and thus build record. You may be in a position to do it now as well.
You should include your claim on all other items including but not limited to FDR’s/PPF/mutual funds/shares, bank locker, payables by employer, insurance which is provided with saving a/c, Credit Card, property of your husband, social security tools like PF/Gratuity, movable/non movable property of your husband, your husband’s share in all estates, etc and if possible obtain a common direction from court including everything…..
The court has opined that the legal of the life insured who staked their claim with LIC are eligible to get the expenses incurred by them on court case from LIC, and LIC should pay.
The court has elaborated on the Act{s}, right of legal heir over nominee and the judgments and acts are self explanatory.
If you feel you may obtain second legalopinion from any competent and experienced lawyer of your choice.
---D. Mohanavelu Mudaliar And Anr. vs Indian Insurance And Banking ... on 16 July, 1956
Madras High Court
“24. In addition to assignments and creation of trusts, in England also it is common in the case of insurances on the assured's own life, for the assured to nominate a beneficiary at the time of taking out a policy. Such a nomination does not, however, by itself, constitute the assured a trustee, nor, since the person nominated is a stranger to the contract, has he any remedy at law. The property in such a policy will therefore pass, not-withstanding the nomination, to the personal representatives of the assured on his death and the nominee has no rights whatsoever, unless:”
--- Andhra High Court
Life Insurance Corporation Of ... vs Nirmala Adi Reddy And Ors
“The question is whether the L.I.C. of India is justified in law in holding the view that in the absence of a contrary direction from Court, it can pay only to a nominee under the policy ignoring the legal heirs of the deceased policy-holders.”
“The Supreme Court accepted the appeal of the minor son and the mother and declared that each of the plaintiffs is entitled to 1/3rd share of the amount payable under the insurance policies in question and also the interest that might have been earned by its investment and decreed the suit accordingly. Thereby, the Supreme Court held that the nomination made by the assured under S.39 of the Insurance Act does not vest the beneficial interest in the nominee and the nomination is subject to the law of succession. The Supreme Court ruled that the insurance policy forms part of the estate of the deceased which is governed by the law of succession applicable to the assured and devolves according to that law on the legal heirs unless validly excluded by a testament.”
“The Supreme Court ruled that S.39 of the Insurance Act cannot be construed as providing for a third mode of succession in addition to the two modes of testamentary and intestate succession. The Supreme Court accorded to the nomination made under S.39 of the Insurance Act only the legal effect of indicating "the hand which is authorised to receive the amount on the payment of which the insurer gets a valid discharge of its liability under the policy." But the Supreme Court categorically held that "the amount however, can be claimed by the heirs of the assured in accordance with the law of succession governing them".
“These observations would clearly show that the rights of the heirs under the general law to succeed to the estate of the assured were in no way capable of being stalled or stopped by the nomination made under S.39 of the Insurance Act and that the nomination would only help the insurer to earn valid discharge when he pays the amounts due to the nominee before the amounts were claimed by the heir or heirs. In other words, the judgment of the Supreme Court is an authority for the proposition that a succession cannot be stopped or stalled by the nomination made under S.39 of the Insurance Act and that the insurance company cannot act contrary to the lawful claims made by the heirs of the deceased assured.”
“It is not a case where the L.I.C. of India had disclaimed knowledge of the status of the first plaintiff and her children as the heirs of the assured. It is really a case of misconception regarding the scope of nomination and its legal significance. Having driven the plaintiffs to seek the shelter of the Court, the L.I.C. of India cannot refuse to bear the costs of the litigation.”
----The following info is placed on web site of all life insurance companies as per directives of IRDA.
What is a Death Claim?
When the life assured dies during the Term of the policy i.e. before date of maturity, proceeds under the policy as a claim, is payable to the beneficiary which is called as Death claim.
The person entitled to the proceeds must complete certain forms giving due proof of the death and establishing the claimant's right to such proceeds. When filed with the company, the company is said to have received a death claim.
Who is entitled to receive the Death Claim benefit?
The claim monies can be paid to any of the following:
· Assignee, incase policy has been assigned or
· Nominee or
· Legal Heirs, incase of open title case or rival claimant case
Appointee, incase the nominee is a minor
A Succession Certificate is issued on application by a competent court on the question of the right to the property of the deceased. The Succession Certificate should specifically provide for disbursement of policy monies.
----The Institute of Chartered Accountants of India
What is Estate?
Estate consists of various assets like immovable properties: House, factory, shop, office, farm, etc. and movable properties: jewellery, paintings, cash & bank balances, bullion, shares, mutual funds, insurance policies, recurring & fixed deposits etc.
Succession
The rights and obligations of the deceased person get transferred to the living person under the process of succession. They pass to some person, whom the dead person or the law on his behalf, has appointed to represent him in the world of living.
Succession depends on:—
(a) The law applicable to the deceased at the time of his/her death
(b) The machinery of succession, whether
(i) Testamentary under Will of the deceased, or
(ii) Intestate in the absence of valid Will, or
(iii) Operation of law, by nomination, transmission,
(c) The nature of property or rights and obligations held by the deceased at Immovable property
The laws of India regulate succession of the immovable property situated in India, wherever such deceased person may have/had his domicile at the time of death.
Laws governing the succession of the deceased person at the time of death are dependent upon the nature of persons, which are as under:
(a) Hindu Succession Act, 1956 and some provisions of Indian Succession Act mainly govern Hindus, Buddhist, Sikh and Jains.
the time of death.
----LIC
https://www.licindia.in/policy_conditions.htm#14
The death claim amount is payable in case of policies where premiums are paid up-to-date or where the death occurs within the days of grace. On receipt of intimation of death of the Life Assured the Branch Office calls for the following requirements:
a) Claim form A – Claimant’s Statement giving details of the deceased and the claimant.
b) Certified extract from Death Register
c) Documentary proof of age, if age is not admitted
d) Evidence of title to the deceased’s estate if the policy is not nominated, assigned or
issued under M.W.P. Act.
e) Original Policy Document
The following additional forms are called for if death occurs within three years from the date of risk or from date of revival/reinstatement.
a) Claim Form B – Medical Attendant’s Certificate to be completed by the Medical Attendant of the deceased during his/her last illness
b) Claim Form B1 – if the life assured received treatment in a hospital
c) Claim form B2 – to be completed by the Medical Attendant who treated the deceased life assured prior to his last illness.
d) Claim Form C – Certificate of Identity and burial or cremation to be completed and signed by a person of known character and responsibility
e) Claim form E – Certificate by Employer if the assured was employed person.
f) Certified copies of the First Information Report, the Post-mortem report and Police Investigation Report if death was due to accident or unnatural cause.
These additional forms are required to satisfy ourselves on the genuineness of the claim, i.e., no material information that would have affected our acceptance of proposal has been withheld by the deceased at the time of proposal. Further, these forms also help us at the time of investigation by the officials of the Corporation.
