HC : The nominee in the insurance policy will not be entitled to the entire amount. Legal heirs can also claim the money from the insurance policy.
A similar case came to light in which the son took an insurance policy before marriage, in which he made his mother the nominee. After the death of the person, there was a dispute between the mother and wife regarding the insurance claim. In which the Karnataka High Court has given an important decision that the nominee in the insurance policy will not have full rights on the insurance amount, if the legal heirs (entitled) of the deceased make their claim.
What did the court say?
The court clarified that Section 39 of the Insurance Act, 1938 does not mean that it can override laws like the Hindu Succession Act, 1956. This decision has come in the case of Neelavva alias Neelamma vs Chandravva alias Chandrakala alias Hema and others. In this case, there was a dispute over the real claimants of the insurance amount.
Legal heir can make a claim
Justice Anant Ramanath Hegde said that the nominee in the insurance policy will get the benefit only if the legal heirs of the deceased do not make a claim. If the heirs like wife, children or parents make a claim, then the division of the insurance amount will be done according to the succession laws.
what was the whole matter
In this case, a man made his mother the nominee in his insurance policy before marriage. Even after marriage and the birth of the child, he did not change the nominee. When he died in 2019, a dispute started between his mother and wife over the insurance amount. The High Court upheld the lower court’s decision and said that the deceased’s mother, wife and child will get one-third of the insurance amount. This decision has made it clear that the nominee in the insurance policy will not get the entire amount, but the legal heirs will also have a right over it.
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