Legal Question in Banking Law in India

Dear Sir,

This is a question on Insurance . My sister was named the nominee of the insurer and she had already applied for the settlement which was in the name of her husband (deceased). But one of the insurance agent who is the husband of the deceased sister is against all our claims due to the fear we claim for the property. So he made the deceased mother to apply for settlement who is neither a nominee but one of the legal heir.

We complained the insurance and they say they replied that our payment is not processed as they received the claim letter from the rival (who is his mother).

My question is Can LIC hold our application on receiving the Claim amount from his mother. If not can we apply for the same in Ombudsman and ask for compensation amount. Please advice further action for the same. Thanks


Asked on 8/25/09, 2:48 am

2 Answers from Attorneys
Pawan Jangid

LIC is supposed to release the claim in favour of nominee. After making written representation to LIC, you may further decide based on the written reply received. You may approach insurane ombudsman (preferably) or the civil court.

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Answered on 8/25/09, 6:50 am
J. Radhakrishnan independent Practice

As per insurance Act, LIC should pay to the nominee. It cannot entertain any claim from anybody else. If anybody has any claim as legal heir he or she can have the claim made only aagainst the nominee by separate action. Since court ruling have said that the LIC gets good discharge by paying to the nominee, but legal heirs as per law can claim their share from the nominee, since the mother of the deceased is also a heir, please have it settled with her agreeing to pay her half the amount. That would bring peace. If LIC does not pay, you can complain to insurance ombudsman

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Answered on 8/25/09, 7:20 am


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