CAV JUDGMENT

This case is about the conflicting claims of a nominee and an heir under personal law, over the benefits flowing from a life insurance policy. Almost similar claims over the estate covered by nomination under different provisions of law, have been the subject matter of discussion in multiple Courts. On innumerable occasions, the Courts have held that nomination cannot override the provisions relating to succession.

2. The amendment to Section 39 of the Insurance Act, 1938 (for short, 'the Act of 1938') as effected by Act No.5 of 2015 has raised the following question:

Whether “certain nominee/s” named in sub- Section (7) and (8) of Section 39 of the Act of 1938 who is/are conferred“beneficial interest” over the benefits under an insurance policy, exclude/s the heir/s from succeeding to the benefits flowing from the insurance policy?

Facts:

3. Sri. Ravi Somanakatti who had subscribed to two Life Insurance Policies died on 20.12.2019. Insured was a bachelor when the policies were issued. Insured had nominated his mother as the nominee to the benefits (Rs.19,00,000/- and Rs.2,00,000/-) flowing from the policies, in the event of his death. By the time, the insured died, he