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Mane (Assitant)     30 August 2013

Insurance policy &legal hire certificate

Dear Sir/Madam,


Please advice in following case.


Background -

For a individual in any insurance policy, Mutual fund, new pension scheme - NPS, or bank FD, gratuity

he/she can nominate two or max three family members with their % of share, not more than that. 

But due to some tragedy policy holder & his all 2/3 nominee will pass away at same time or after 2/3 days in that sad attack then how other remaining family member will clam / access the fund in that too such hard & tragic situation. 

Some way are available in above case like Court procedure for obtaining legal heir certificate, but it will take time & its very hard to work after such tragic death incidence.


Question –


Its not possible that policy holder can make a letter like legal heir certificate when he is alive.


In that certificate he can mention 5 to 6 nomination (with who will survive clause & equal distribution of fund)  and this letter will common for all places specially insurance, NPS, Bank & funds.


I aware WILL can do this work but it is very in detail. Individual who not have any fix assets like car, house, plot but only have MF, Policy, FD can find its very useful & easy. Such legal document can able to prepare.



Why this bank, NPS , MF & insurance only gives 2 or 3 nomination option. They can able to give min.

5 – 6 nomination. ??


Please guide


Thank you




 3 Replies

Mane (Assitant)     30 August 2013


Dear Sir/Madam,


Please guide


Thank you


Kumar Doab (FIN)     03 September 2013

It is felt that if the column for ‘Nomination’ has limited space the a/c holder/policy holder can attach a separate sheet and can nominate as many as he wants even 100.

The assignment overrules and supersedes nomination.

The assignment in case of family members, blood relation may not require a detailed justification and ‘out of love and affection’ may suffice and in other cases a financial pronote may be required.

The nominee is just a hand to receive the funds and has to part it to legal heir.

The rights of legal heir shall score over nomination.


The rules in case of Life Insurance, bank instruments are well defined and are available at the websites of the bank, RBI, LIC or the corresponding company.

1 Like

Advocate Ravinder (Advocate/Attorney)     05 September 2013

Kumar Daob had already explain well. 


A.1--No need of making legal heir cert.  On the death of the policy holder, the shares automatically falls upon the legal heirs.  The nominee is only care taker of the policy. The legal heirs have to file succession OP in civil court to get succession cert. Relating to will, If the policy holder wants to distribute the proceeds of the policy to only some of the legal heirs, then will is necessary. 


A-2--Already answered by kumar doab.

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