IN THE HIGH COURT OF ANDHRA PRADESH AT AMARAVATI
RAVI NATH TILHARI, J.
Koduri Lakshmi Padmavathi - Petitioner
Versus
Life Insurance Corporation Of India, LIC - Respondent
Writ Petition No.3263 of 2023
Decided On : 16-02-2023
Constitution of India,1950 - Article 226 and 12 - Insurance Act - Sections 39 and 38 - Seeking to disburse the amounts - Procedure for change of nomination - Policy holder of some policies from LIC under 3 policy - Petitioner was made nominee by the policyholder. policyholder died - Petitioner claimed amount under the policy - Held, Section 39 of Act was intended to act as a third mode of succession provided by statute - Provision in sub-section (6) of section 39 which says that amount shall be payable to nominee or nominees does not mean that amount shall belong to the nominee or nominees - Court have to bear in mind here the special care which law and judicial precedents take in matter of execution and proof of wills which have effect of diverting the estate from ordinary course of intestate succession and that rigour of rules governing the testamentary succession is not relaxed even where wills are registered - Writ petition is dismissed
JUDGMENT :
1. Heard Ms. Tadasina Alekhya, learned counsel, representing the learned counsel for the petitioner and Sri Battula Raj Kiran, learned counsel for the respondent Nos.1 to 3 i.e., the Life Insurance Corporation of India (in short, the LIC) and its authorities.
2. For the order proposed to be passed issuance of notice to the unofficial respondent No.4 is dispensed with.
3. This writ petition under Article 226 of the Constitution of India has been filed for the following relief:-
4. The petitioner's paternal uncle i.e. her father's brother, Lingala Sai Babu, was the policy holder of some policies from LIC under 3 policy Nos.673751840, 673841179, 673841180, 673670739, the petitioner was made nominee by the policyholder. The policyholder died on 02.07.2022. The petitioner claimed the amount under the policy. Her submission is that the original policy is with the petitioner and consequently no change could be made in the ‘nominee’ as the original policy document is required for making such change, and consequently the claim in favour of the 4th respondent is not justified.
5. Learned counsel for the petitioner submitted that change in the nominee from the petitioner's name to the 4th respondent in the policies of the policy holder was without following due procedure and consequently the rejection of the petitioner's claim by the authorities and their proceeding to make payment to the 4th respondent is illegal.
6. Learned counsel for the petitioner further submits that the petitioner is entitled for the payment of claim amount under the policy, as the policyholder executed will dated 21.12.2021 in favour of the petitioner.
7. On 09.02.2023 this Court passed the following order:-
2. It is further submitted that the original policies are with the petitioner and for change in the nominee, the original policies are required. The copies of the policies as annexed with the petition does not show the respondent No.4 as nominee and it is the petitioner whose name is there as nominee. She further submits that, if some change is made in the nominee, the prescribed procedure has to be followed.
3. Sri Rajesh, learned counsel, representing Sri B.Raj Kiran, learned Standing Counsel for the respondent Nos.1 to 3, raised preliminary objection that the writ petition is not maintainable as the petitioner is raising the dispute of nominee, which is a disputed question of fact and can be determined in s
P.C. Chacko and another vs. Chairman, Life Insurance Corporation of India and Others
Smt. Sarbati Devi and another vs. Smt. Usha Devi
Uma Sehgal v. Dwarka Dass Sehgal (AIR 1982 Del 36 : ILR (1981) 2 Del 315)
Nominees of life insurance policies do not have exclusive beneficial interest; amounts are to be distributed according to the law of succession.
Nominees of insurance policies are obligated to distribute proceeds among rightful heirs according to succession law.
Nomination in insurance does not confer absolute rights; benefits are subject to distribution laws among legal heirs.
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