A nominee in a LIC policy is a person recognized statutorily to be the payee to provide a valid discharge for the payment of policy moneys to the corporation. At the time of issue, the nomination would be incorporated in terms of text of policy.
When the policy is prepared for issuing, and when no nomination is incorporated then this would affect the nomination ordinarily through the endorsement on the policy. This type of nomination should be intimated to the Corporation by means of a notice and should be registered in records by the corporation. But this nomination need not be stamped.
When there is a requirement for any change or cancellation of a nomination, it should be given only by means of Writing by the life assured. The nomination that is made for the joint life policy can only be a joint nomination. Since there would be no insurable interest, a nomination cannot be made in favor of a stranger. There would be no moral hazard too.
In favor of wife and children also, a nomination can't be made and is not valid. But the names of the existing wife and children should be specified. Whereas, a nomination can be made for successive nominees, that is, nominee "A" failing him to nominee "B" failing whom nominee "C".
When the nominee is a minor, an appointee should be appointed in order to receive the money when the event of death occurs during the death of minority of the nominee. Nomination can't be made for the policies that are financed through HUF funds.
One of the main reasons for the changing the nominee will be either the death of the nominee or if there exists a misunderstanding between the policy holder and the nominee.
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