Last Updated:June 20, 2025, 08:04 IST
If both the policyholder and nominee pass away, other legal heirs can file a claim. Legal heirs usually include close family members such as the spouse, children, or parents
If a will exists, the individuals named in it can also claim the insurance amount. (News18 Hindi)
When taking out an insurance policy, most people name their spouse, children, or parents as nominees, with the natural intention for the claim amount to benefit their loved ones in the event of an untimely death. However, tragic situations sometimes arise where the nominee also passes away along with the policyholder.
Many times, tragic road accidents and tragedies lead to this situation where families lose multiple members together. In such cases, how can the insurance money be claimed, and who gets the first right?
According to the Insurance Regulatory and Development Authority of India (IRDAI), if the policyholder and nominee die in the same accident, the insurance company can presume that the nominee died after the policyholder. In this case, the legal heirs of the nominee are considered eligible for the claim. While final decisions may vary depending on the insurer’s terms and the specific policy, this principle generally applies.
Legal Heirs Can Claim The Amount
Insurance expert Manoj Jain explains that if both the policyholder and nominee die, other legal heirs can file a claim. Legal heirs typically include close relatives like the spouse, children, or parents. If a will exists, the individuals named in it can also claim the insurance amount. The Hindu Succession Act provides a detailed order of priority for such claims.
Who Are Considered Legal Heirs?
Under the Hindu Succession Act, the legal order of priority (for a male policyholder) is as follows:
Class 1 Heirs: Wife, sons and daughters, mother. If the son or daughter has passed away, policyholder’s grandchildren can claim the insurance money.
Class 2 Heirs: If no Class 1 heirs are present, then ‘Class 2 heirs’ are considered, which include: Father, brothers and sisters, nephews and nieces, grandparents, and others.
If No Close Relatives Exist
If the policyholder has no heirs in Class 1 or Class 2, then extended family such as cousins from the father’s or mother’s side may claim the amount. If no legal heir is found, the insurance amount is transferred to the government.
If The Policy Was Taken By A Woman
For a female policyholder, her husband, sons, and daughters get first priority. If none of them are alive, the husband’s family (parents, siblings, etc.) gets the next right. After them, her own parents come into consideration, followed by her father’s and then mother’s heirs. However, if the woman has left a will, that takes precedence.
Documents Required To Claim Insurance
- Death certificates of both the policyholder and the nominee
- Original policy document or a valid copy
- Legal Heir Certificate, obtainable from the local Tehsildar or revenue officer
- Certified copy of the will, if available
- Succession Certificate, which may be required from the court for large claims or disputed cases
- Identity and address proof of the claimant (such as Aadhaar card, PAN card, and other KYC documents)
In such emotionally and financially distressing times, knowing your legal rights and the correct claim process can offer some relief. If in doubt, consult a legal expert or financial advisor to guide you through the claim procedure.
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