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DEVASHIS BARUAH
Ankita Borkotoky, W/o. Late Rajeeb Boruah – Appellant
Versus
Life Insurance Corporation Of India (LICI), Represented By Its Managing Director – Respondent
JUDGMENT :
(Devashis Baruah, J.)
Heard Mr. M. Sarania, the learned counsel appearing on behalf of the Petitioner and Mr. A. L. Mandal, the learned Standing counsel appearing on behalf of the Respondent Nos. 1 to 6. I have also heard Mr. B. P. Sharma, the learned counsel appearing on behalf of the Respondent Nos. 7 and 8.
2. The issue involved in the instant proceedings pertains to as to whether the Petitioner herein would be entitled to a share of the three LIC Policies which was held by the husband of the Petitioner wherein the Respondent No.7 and 8 were the nominees.
3. From a perusal of the materials on record, it reveals that the Petitioner married one Rajeeb Boruah (since deceased) on 24.04.2021 as per the Hindu Social rituals. Subsequently, the marriage was also registered and a marriage certificate was issued on 28.04.2022. The husband of the Petitioner Late Rajeeb Boruah, during his lifetime had taken three life insurance policies issued by the Respondent Corporation. The said policies were bearing Nos. 486006062, 486008012 and 444707681. It is an admitted fact that in respect to the Policy No. 444707681, the Respondent No.8 was the nominee. However, in respect to the other
Nominees of life insurance policies do not have exclusive beneficial interest; amounts are to be distributed according to the law of succession.
Nomination in insurance does not confer absolute rights; benefits are subject to distribution laws among legal heirs.
Nominees of insurance policies are obligated to distribute proceeds among rightful heirs according to succession law.
Nominees in insurance policies are receiving hands; legal heirs retain rights to claim amounts, especially in cases of hardship.
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,....
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.
Amended provisions of Section 39 of the Insurance Act establish that nominees have independent rights over insurance proceeds, necessitating adjudication of any will claims in proper legal proceeding....
Nomination in insurance does not confer absolute rights over terminal benefits, which pertain to legal heirs under succession laws.
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