Patnaik Jee, I will give you a scenario. Parents are just a middle class with some assets. They got their Son educated with a lot of difficulties and taking loans including a loan from the bank for which their house is under the mortgage. The Son got a good job with very good salary. Father is the only earning member, his retirement and Son getting job almost coincided. Son got married to his colleague after working in the job for about 5-6 years. The Daughter in Law is having an equal salary and her parents are well off and belong to the upper-middle-class category. Poor fellow son died in an accident just a few months from marriage. According to your suggestion, what shall happen?
Under no circumstances, I am trying to argue that once the nominee gets the money ( in the instant case where the forum was asked to respond) he should dupe the other natural claimants. It is expected under the Nomination I repeat, that the Nominee acts like a Trustee. And when there is a dispute and one of the other claimants objects for the money to be given to Nominee, the Nomination has come to an end. What the Government thought that without much hassle one of the family members get the money(without entangling themselves in paperwork to get this paper, that paper, that Certificate, that declaration etc) and such family member (Nominee) shall be good enough to act as a Trustee to that money and shall not try to benefit himself only. If the nomination is not contested, the payment goes through and if it is contested, the nomination is no longer valid.
If I remember correctly only in the case of a person without any family at the time of giving nomination, such a person can give his nomination in favor of any person he/she likes. However, once he/she gets married, such nomination shall forthwith become invalid. And such Employee should give nomination in favor of his family. In all other cases, the last nomination stands irrespective of the fact whether the person got married after giving nomination.
Arguments can be made both ways whether the nomination can be changed and decided in favor of the weakest among the claimants when there is counterclaims. But who decides! The Employer? Banks? Impossible.
Can anybody give some law contrary to our Indian Law on Nomination is prevalent anywhere in the world?