New Delhi : It is very important to make a nominee for all financial accounts like bank account, FD, mutual funds, stocks, insurance. Whenever an account holders or policyholders die, in such a situation the money deposited in his account is given to the nominee made by him.

The High Court of Karnataka has given an important verdict in the case to the nominee in the insurance policy. The Karnataka High Court has said that if the legal heirs of the policyholders claim, then the insurance profit of the nominee made for the insurance policy will not have the right to the full right.

Nominee provision of insurance act successor law

The High Court of Karnataka has also made it clear that the Insurance Act 39 of the Insurance Act, 1938, the Hindu Succession Act, 1938 does not affect the personal succession laws like 1956.

Justice Anant Ramnath Hegde has given this verdict in the case of Neelvva alias Neelma vs Chandravwa alias Chandrakala alias Hema and the rest.

Nominee will get all the benefits

There was a dispute between these parties about the right contenders for the insurance claim. Justice Anant Ramnath Hegde has said in his judgment that a nominated person in the insurance policy can get the benefits of insurance only if the legal heirs do not claim them. If a legal heir claims his authority, the claim of a nominated person should be subject to the personal succession laws.

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Case between mother-in-law

A person involved in this case bought 2 different insurance policy before his marriage.

The person made only his mother a nominee in both these policy. The person did not make any changes in the information of the nominee even after his marriage and the child's birth. After the person died in 2019, a legal battle started between his mother and wife for payment of insurance amount. The High Court of Karnataka, retaining the decision of the lower court, has ruled that the mother, wife and child of the deceased will be found one -third of insurance benefits.

The person made only his mother a nominee in both these policy. The person did not make any changes in the information of the nominee even after his marriage and the child's birth. After the person died in 2019, a legal battle started between his mother and wife for payment of insurance amount. The High Court of Karnataka, retaining the decision of the lower court, has ruled that the mother, wife and child of the deceased will be found one -third of insurance benefits.