Claim cheque will be in favor of?
Madhav Madhur
(Querist) 06 May 2010
This query is : Resolved
Last month my younger brother died in an accident. He was married last year, no kid. His mother is the nominee of his insurance policies, but his in-laws are claiming to insurance companies that only his wife is the legal heir, so claim cheque should be in favor of his wife only. Is it possible for insurance companies to release cheque in favor of his wife, instead of his mother, who is the nominee?
R.R. KRISHNAA
(Expert) 06 May 2010
Nominee merely has powers to withdraw/receive the policy amount and he should disburse the amount equally among the legal heirs.
Now the policy amount has to be equally shared by your mother and your brother's wife and children (if any).
The latest ruling of kolkata High Court reported in Times of India also confirms this.
Madhav Madhur
(Querist) 06 May 2010
It's not the answer of my query. I am also aware that nominee is only a trustee. Policy amount will be distributed equally among all legal heirs. And in my case his wife and mother are legal heirs. I am asking that "Can insurance company release the cheque in favor of his wife, who is not the nominee?"
ESTHERPRIYA
(Expert) 06 May 2010
My humble advise is be polite to experts who are taking their precious time to answer your query right? If i said any thing kindly aoplogise me...
Coming to your query:
The insurance company usually in such case inorder to avoid disputes ask you to give death and legal heirship certificate. Then will ask every person of the legal heirs to give a NOC to release the money or to write a cheque in favour of one person (it may be wife or mother). When they ask for NOC, u people can sit togethr and settle the issue amicably. As a abundant and caution you can write a letter or notice to insuracne company not to disburse the money without your consent as you are one of the legal heir or nominee as the case may be.
Madhav Madhur
(Querist) 06 May 2010
Sorry, if my words hurt anyone, but really I have no such intention. And thanks to reply Padmapriya.
Ashok Yadav
(Expert) 06 May 2010
Padampriya has resolved your query, i am agree with her.
We are here to help you free of cost and everyone should maintain the decorum of this forum.
mahendrakumar
(Expert) 07 May 2010
please do as suggested by padmapriya.
Intimate the insurance company about the existence of reval claimant like you,if you have not already done.
unless the insurance company get a letter i righting,they may proceed with the payment to the nominee in the policy documents.
Parthasarathi Loganathan
(Expert) 07 May 2010
However I wish to add that as in case of Banks, there is no bar on the Insurance companies to settle the balance to the nominee. However, legal heirs are entitled to claim from the nominee on settlement through litigation. Insurance company is not bound by any notice sent by legal heirs and can act based on Nomination Rules in force.
mahendrakumar
(Expert) 09 May 2010
however as a good practice insurance companies do honour such legal or any notice provided the same is received before settlement of claim as per the existing nomination.
Madhav Madhur
(Querist) 11 May 2010
Insurance company(TATA-AIG) has stopped the cheque in same case on application of second party. What should we do next now?
