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Paper Details

The Insurance Laws (Amendment) Bill, 20 08 in India: Legal Position of a Nominee

Minakshi Balkawade


Life insurance certainly serves as a tool of fin ancial security against ri sks ensuing from unfortunate loss of the bread winner of a family. However it is crucial for the insured to make sure in advance that on his death the proceeds should go to his beneficiaries. Accordingly they nominate their family members, assuming that in case of unforeseen contingencies the latter will get title to the proceeds. However real ity is far away from intentions. Distinct construals by different courts regarding the legal position of a nominee coupled with lack of awareness of the same among peo ple are a cause of grave concern. Thi s warrants immediate attention by law - makers through amendment s to the Insurance Act, 1938 as are comprehensible to all market participants and also bring consistency in interpretation of the law . In this context the pa per highlight s the legal status of a nominee as interpreted by different c ourts in India, the tribulations arising out of the same and the efficacy of the new Insurance Laws ( Amendment ) Bill, 2008.