Nomination
Rajarajan
(Querist) 25 April 2011
This query is : Resolved
I have appointed my wife as nominee in all my investments and other insurance policies, Bank and Demat Accounts.
Is it necessary to for a nominee to submit any relationship at the time of claims?
I believe nominee can be any person even a third party can be appointed as a nominee.Because some of the insurance companies asking for succession certificate / relationship proof for nominee if relatives.
Please clarify.
R.Ramachandran
(Expert) 25 April 2011
Dear Mr. Rajarajan,
By appointing a 'Nominee', you only ensure that the money is to be received by the Nominee. The 'Nominee' will be holding the moneys that he/she receives in trust for and on behalf of the legal heirs. The money has ultimately to be distributed by the Nominee to the legal heirs.
IF YOU WISH THAT THE ENTIRE MONEY should go to your wife alone, then it will be adviseable for you to leave a registered WILL in her favour in respect of all such deposits / insurance claims.
You are right, a nominee can be any person. If they are relatives, you have to mention their relationship with the person who is nominating. But beyond that, I do not think that the Insurance Company or any one else can insist for succession certificate / relationship proof.
Guest
(Expert) 27 April 2011
Dear Rajarajan,
Relationship is already mentioned in the nomination form by the person who nominated any person, but the at the time of disbursement, the banking or insurance company can ask for the identity proof about the relationship, whatever has been mentioned in the nomination form, so that the claim is not disbursed to any wrong person. They have the right to check the genuineness of the claim and the claimant.
However, nominee can even be third party, but the satisfaction of the paying company about the genuineness of the claimant is only in the interest of the beneficiary. Suppose you are the actual nominee made by some one else, but some other rajarajan puts up the claim and take away the whole money, to which you would have been the claimed, would you expect the company to pay the claim to you also, if it had paid to the other party without verification of his genuineness? The company can say, it has already paid the claim and that you are the wrong claimant. In that case complications can arise for bot ou and the comany also, while the wrong claimant would have disappeared with the money.
malipeddi jaggarao
(Expert) 29 April 2011
Mr.Ramachandran and Mr.Dhingra advised you well. Moreover, to prove the relationship for a wife is not a difficult thing. Voter Identity, Ration Card, Pass port, or any other registered document wherein a mention is made to that effect is suffice.
