In most life insurance cases, when the policyholder dies, the insurance company pays the money to the nominee, usually the husband or wife.
When buying a life insurance policy, it is important to mention the nominee’s name. Most people choose their spouse as nominee, so if the policyholder dies, the wife or husband receives the insurance money.
It can also work the other way — if the wife buys the policy, she can make her husband the nominee. This system has been followed for many years.
Normally, the insurance payout goes to the nominee after the policyholder’s death. But problems arise when both the policyholder and the nominee die in the same accident.
What Does IRDAI Say?
On June 12, a flight to London crashed in Ahmedabad, and many families died together in the accident.
In some cases, both the policyholder and nominee passed away. This raises the question — who gets the insurance money now?
According to the Insurance Regulatory and Development Authority of India (IRDAI), if both die in the same accident, the company assumes the nominee died after the policyholder.
Legal Heirs Can Claim the Money
Experts say that in such situations, the legal heir of the nominee becomes eligible to claim the insurance money.
The insurance company makes a decision in such cases based on the terms and conditions of the policy, but generally, the legal heir of the nominee is considered eligible.
The legal heir can submit a claim with the necessary documents and proof of relationship with the nominee. The company releases the amount after verifying the details.
Who Are Legal Heirs? Class I and Class II
Under Hindu Succession Law, legal heirs are divided into two groups — Class I and Class II.
Class I legal heirs include: spouse (wife/husband), son, daughter, and mother.
If the son or daughter has died, then the grandson or granddaughter of the policyholder can claim the insurance money.
If there are no Class I heirs, then the claim moves to Class II legal heirs, which include:
father, brother, sister, nephew, niece.
So, if both the policyholder and nominee pass away, the insurance money does not go unclaimed.
Legal heirs of the deceased can step forward, provide documents, and claim the insurance as per the policy terms and succession laws.
