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Nomination Change

Nomination:
The nominee is statutorily recognized as a payee who can give a valid discharge to the Corporation for the payment of policy monies.

Nomination will be incorporated in the text of the policy at the time of its issue. After the policy is prepared and issued and if no Nomination has been incorporated the assured can ordinarily affect the nomination only by an endorsement on the policy itself. A nomination made in this manner is required to be notified to the Corporation and registered by it in its records. A nomination is not required to be stamped.

Any change or cancellation of nomination should be given in writing only by the Life Assured.

Nomination under Joint Life Policy can only be a joint nomination. Nomination in favour of a stranger cannot be made as there is no insurable interest and moral hazard may be involved. Nomination in favour of wife and children as a class is not valid. Specific names of the existing wife and children should be mentioned. Where nomination is made in favour of successive nominees, i.e., nominee “A” failing him to nominee “B” failing whom nominee “C”, the nomination in favour of one individual in the order mentioned will be considered. Where the nominee is a minor, an appointee has to be appointed to receive the monies in the event of the assured’s death during the minority of the nominee. No nomination can be made under a policy financed from HUF funds.

In the case of first endorsement of nomination the date of registration of nomination will be the date of receipt of the policy by the servicing office and in case of any other nomination or cancellation or change thereof, the date of receipt of the policy and/or of notice whichever is later, will be the date of registration.

Nominee:- The process by which a person can be identified to receive the policy amount if the policyholder dies during the policy term.

A policyholder can do nomination at the time of proposal by giving the details of nominee in the proposal form. If nomination cannot be done at the time of proposal. It can be done later also. If nomination is done later, it has to be effected by giving notice in a prescribed form of LIC & it has to be endorsed on the back of the policy document. A nomination is not required to be stamped.

Process of change of nomination: A policy holder can change his nomination during the policy term and it can be changed any number of times. To change the nomination policyholder has to give a notice to LIC OF INDIA in a specified form (Form 3750) and nomination has to be endorsed. Further, the policyholder can remove it without any prior notice to the existing nominee. Nomination can be done and changed any time by the Life Assured during the policy term in the LIC OF INDIA's office.

At the time of nomination the following documents are required

1. Relation proof of life assured and the person being nominated.
2. Form 3750 is also required
3. Policy bond is required for endorsement

For more details, you can discuss at LIC CLIA OFFICE