- It is the process of life insured proposing the name of the person(s) to whom the sum insured should be paid by the insurance company after his/her death.
- A nominee does not have any right to whole (or part) of the claim.
- For an insurance policy nomination is allowed under Section 39 of the insurance Act 1938.
Provisions of Section 39
- Nomination can be made when the policy is bought or thereafter
- Nomination is not applicable to sec 6 of MWP Act
- Policy moneys payment is made to surviving nominees
- Assignment cancels nomination
- Addition, change or cancellation of nomination is allowed.
- Nomination shall be by endorsement
- Where the nominee is a minor, an Appointee needs to be appointed by policy holder
- The appointee loses the status when the nominee reaches majority age.
- No specific share of nominee can be made
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