“You’ve heard the word ‘nominee’ in insurance forms — but do you really understand what it means?”
This is a real risk — and one that can be avoided if you understand the power of a nominee in your insurance policy.
What Exactly Is a Nominee?
A nominee is the person you officially assign to receive the insurance payout if something happens to you. Think of it as your trusted representative — someone who ensures your money doesn’t get stuck in paperwork after you’re gone.
In India, a nominee is usually:
- A family member (spouse, parent, child)
- A legal heir
- Or in some cases, a friend or relative (though this gets tricky legally)
Why It’s More Important Than You Think
- It Directly Affects Who Gets the Money: If there’s no nominee — or a wrong one — your claim may get delayed, disputed, or stuck in legal battle.
- Nominee ≠ Beneficiary (Always): Many people don’t realize that just putting someone as a nominee doesn’t always mean they’re the legal heir. In India, the law may still prioritize a legal heir over the nominee — unless your nominee is a “beneficial nominee” (explained below).
- Beneficial Nominee Rule (Post-2015): After IRDAI’s 2015 rule, if you nominate your parents, spouse, or children, they become beneficial nominees — meaning they legally receive the full payout, even if other heirs exist.
Can You Change the Nominee Later?
Yes! You can change your nominee anytime — and you should, especially after:
- Marriage or divorce
- Birth of children
- Death of your original nominee
You simply need to fill out a Nomination Change Form with your insurer and submit proof of identity.
Common Mistakes People Make
- Forgetting to add a nominee at all
- Nominee dies, but never updated
- Choosing someone not legally connected
- Not telling family who the nominee is
- Confusing nominee with assignee (in case of loans)
How to Check Your Current Nominee?
You can view and update your nominee through:
- Your insurer’s online portal or app
- Customer care helpline
- Visiting the nearest branch office
- Through IRDAI’s Bima Bharosa portal (coming soon)
Choosing the right nominee isn’t just paperwork — it’s an act of love and responsibility.
“So before you sign that policy, take a moment to choose your nominee wisely — your family’s future could depend on it.”
Make sure your nominee is updated, legally valid, and aware of your policy.
Because in the moment your family needs it most, a clear nominee can mean the difference between quick help and legal headaches.
“In case you ever face issues related to claim settlement, nominee rejection, or policy service, you can now raise your complaint easily through the new IRDAI portal. Here’s how to file an insurance complaint on IRDAI’s new platform.”
