What happens if your nominee does not know about your insurance policy?

what happens if your nominee does not know about your insurance policyWow that’s a good question isn’t it?

First let me tell you who a nominee is.

If you have a life insurance your nominee is the person who will receive the money if you die during the term of the policy.

So what will you tell him?

  1. Tell him that he is the nominee!
  2. Is there an additional nominee? Tell him that too.
  3. To claim the insurance money usually he/she will need your policy contract, a claim form and a death certificate.
  4. At times additional documents might be presented to the insurance company which includes an FIR, a physician’s report or a post-mortem certificate depending on the circumstances of your death.
  5. If you die within the first 3 years of the policy then he should be prepared to bring medical attendant’s certificate, a burial or cremation certificate, a certificate from the deceased’s workplace, and a police report in case of an accidental death. 

The list mentioned above, is not exhaustive but still useful.

Just to keep you posted these days you get insurance when you go for a credit card. Reserve bank of India has prescribed certain rules regarding this in its master circular issued on July 2, 2012.

Where banks are offering you (credit card holder) insurance coverage in tie up with insurance companies they can take the details of your nominee/s for such insurance coverage in respect of accidental, disablement and death benefits. It is the duty of the bank to ensure that the insurance companies are keeping a record of the insured. They can also issue letters notifying you about the name, address and telephone number of the insurance companies.

I suggest you tell your nominee/s what I just told you and that can help your loved ones when you won’t be around.