What are the rights of a nominee?
What are the rights of an assignor and assignee? On assigning the policy, the assignor (life assured/policy holder) loses his right over the policy and the assignee gets the right and becomes the owner of the policy. The assignee can further re-assign the policy and he also has a right to sue under the policy.A valid Assignment once made cannot be cancelled. It is only an another valid assignment the earlier assignment gets cancelled. In all the cases, Assignment automatically cancels the nomination.However, when the policy is assigned to LIC, nomination gets affected and it does not get cancelled.Under conditional assignment, if the conditional assignee dies, the benefit under the policy goes back to the life assured if surviving. Otherwise, the benefit goes to policyholders nominee. Under absolute assignment, if the absolute assignee dies, the benefits under the policy go to the legal heirs of the assignee. What is nomination?
Under Nomination, the Nominee gets only the right to receive the policy money in the event of the death of the policyholder. Nomination does not pass on the property in the policy. If nominee dies when the policyholder is still surviving then the nomination would be ineffective. Nomination has no effect if the policyholder is surviving. If Nominee dies after the death of the policyholder but before receiving policy money, then also Nomination becomes ineffective and money can be claimed only by the legal heirs of the policyholder. How can nomination be changed or cancelled? A nomination can be changed or cancelled either by an endorsement at the back of the policy or by making a will. In the case of change or cancellation by a will, notice of such cancellation or change would be required from the executors of the will after the death of the insured. In case of change or cancellation through endorsement, it should be notified to the LIC for registration in its records.
Related Questions
- A nominee is not entitled to exercise any voting rights before being registered as a member. Is it necessary for Deemed Members (Demat Shareholders) to nominate the same person whom they have appointed as their nominee for their shareholdings with the depository ?
- Can the nominee exercise voting rights before being registered as a member?
- What are the rights of a nominee?
