No nominee, or the nominee has died — how is a life insurance claim paid?

If every nominee died before the policy became payable, Section 39 makes the money payable to the policyholder's heirs, legal representatives or succession-certificate holder; if no nominee was ever named, expect the insurer to ask for evidence of who is entitled to the estate before it pays. If a parent, spouse or child nominee survived the policyholder but died before payment, Section 39 gives that nominee's share to the nominee's own heirs, for a policy on the policyholder's own life maturing for payment after the 2015 amendment. Intimate the claim first, then ask the insurer in writing exactly what proof of title it will accept.

A missing nomination does not cancel the policy money. It changes who receives it, and what the insurer needs to see before it pays.

Who is paid when there is no nominee

• At least one nominee survived the policyholder.: Section 39 of the Insurance Act makes the money payable to the surviving nominee or nominees.^[1]
• Every nominee died before the policy became payable.: The money is payable to the policyholder or the policyholder's heirs, legal representatives or the holder of a succession certificate.^[1]
• A parent, spouse or child nominee died after the policyholder, before payment.: Where Section 39's rule for such a nominee applies — a policy on the policyholder's own life, maturing for payment after the 2015 amendment — that nominee's share is payable to the nominee's own heirs, legal representatives or succession-certificate holder.^[1]
• No nomination was ever made.: Expect the insurer to ask for proof of who is entitled to the estate. LIC's claim requirements, for example, include evidence of title to the deceased's estate if the policy is not nominated, assigned or issued under the Married Women's Property Act.^[2]

What the insurer will ask for

Life insurers must list the documents they need for a claim in the policy document and on their websites. Where there is no nominee, expect a request for evidence of title — proof of who is entitled to the money. Section 39 itself refers to the holder of a succession certificate, but what a particular insurer accepts is for it to state, so ask it to put its list in writing before you apply to a court or any authority for anything.^{[3, 2, 1]}

Steps for the family

1. 1

   Intimate the claim now.

   Do not wait for court papers before telling the insurer. Late intimation is not by itself a ground to reject or close a claim, and IRDAI's settlement timelines are counted from the date of intimation.^[3]

2. 2

   Ask what proof of title the insurer needs.

   Write to it with the policy number, the date of death and who survives, and ask for its full list of requirements. Insurers must ask for all the documents they need at one go.^[4]

3. 3

   Agree within the family who will apply.

   Decide who will deal with the insurer and, if a court document is needed, who will apply for it, so that the family does not make competing requests.

4. 4

   Get the proof, then submit and track.

   If a court document is needed, a lawyer can tell you which one fits your family's situation. Keep copies of everything you send, and a note of every reference number.

ClaimAssure is an independent private platform. It is not an insurer, IRDAI, Bima Bharosa or the Insurance Ombudsman, it never files anything on your behalf, and it cannot promise any outcome. What it does is read your documents and show you what they say.

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