Nomination – Insurance Policy
Nomination – Insurance Policy: is a process, which enables the settlement of claims in an easy way.
This is the place where the life assured proposes the name of the person(s) to whom the sum assured should be paid by the insurance company after his/her death.
The life assured can nominate one or more than one person as a nominee(s).
Where more than one nominee is appointed, the death claim will be payable to them jointly, or to the survivor or survivors. No specific share for each nominee can be made. Nominations made after the commencement of the policy have to be intimated to the insurers to be effective.
Nomination can be done either at the time the policy is bought or later.
When the Life Assured is a Minor
Where the nominee is a minor, the policyholder needs to appoint an appointee.
The appointee needs to sign the policy document to show his or her consent to acting as an appointee.
The appointees lose their status when the nominee reaches majority age.
The life assured can change the appointee at any time.
If no appointee is given, and the nominee is a minor, then on the death of the life assured, the death claim is paid to the legal heirs of the policyholder.