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SABYASACHI BHATTACHARYYA
Seuli Maity – Appellant
Versus
Life Insurance Corporation of India – Respondent
JUDGMENT :
1. Learned counsel for the petitioner submits that the petitioner is the widow of a deceased person who died in an unfortunate avalanche in Sikkim.
2. The petitioner claims her share in the insurance amount on the demise of her husband, on behalf of herself and her minor son.
3. Learned counsel appearing for the LICI submits by placing reliance on Section 39 of the LICI Act that the norm is that the nominees are the receiving hands.
4. The petitioner has relied on the judgment of Smt. Sarabati Devi and another vs. Smt. Usha Devi reported at AIR 1984 SC 346, where it was reiterated by the Supreme Court that nomination merely indicates the receiving hands but the legal heirs of the deceased are not deprived of their rights to the amount of claim.
5. Learned counsel appearing for the parents of the deceased policy holder, who are also the nominees of the policy, submit that in spite of their best efforts, the petitioner with her son are not coming to her matrimonial home, thereby depriving the private respondents from the company of their grandson.
6. It is further reiterated that the dues of the grandson of the private respondents should be kept in a fixed deposit, to be used by
Nominees in insurance policies are receiving hands; legal heirs retain rights to claim amounts, especially in cases of hardship.
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.
A nominee under an insurance policy is merely an authorized recipient and does not possess beneficial interest in the policy amount, which is subject to the laws of succession.
Nominees of life insurance policies do not have exclusive beneficial interest; amounts are to be distributed according to the law of succession.
The main legal point established in the judgment is the entitlement of a nominee, particularly if a spouse, to the entire amount payable by the insurer under Section 39(7) of the Insurance Act, 1938,....
Nominees of life insurance policies function as trustees, not automatic beneficiaries; the 2015 amendment to the Insurance Act does not retroactively alter rights for policies where the policyholder ....
Nominees under life insurance policies act as trustees rather than beneficiaries, subject to the provisions of the relevant personal laws and policies in effect at the time of the policyholder's deat....
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