Nomination in Life Insurance (119 Words)

Nomination in Life Insurance

Provision of Nomination in Life insurance is related to Section 39 of the Insurance Act. According to the above Section, Nomination is such a right given to the Life insured by whom he may nominate any person in his life insurance policy. The nominee will have the right to claim the Sum Insured if the death of the Life insured occurs during the policy term.

When the policy money becomes due for payment on the death of the policyholder, it can be paid only to the person who is legally entitled to give a valid discharge to the Corporation. For quick settlement of claims, it is in the interests of the policyholders to effect a nomination in respect of their policy.