What are the norms to change the nominations under a life cover policy? How many times can this be done?
Ranjith Nair, Kochi
A nominee in a life insurance policy plays an important role in the disbursement of sum insured, should a claim arise under the policy. The role of the nominee is that of a trustee or a facilitator. In the event of a claim the nominee does not receive the policy money in his individual capacity. He cannot exercise any kind of right on the whole or even part of the claim amount. He has the right to give a valid discharge to the insurance company and to hold the money on behalf of those who are entitled to it, i.e. the legal heirs of the insured. Every life insurance company has its procedure to change the nomination. Normally, it is an intimation of change of nomination to be given in a standard prescribed form. There is no restriction on the number of times one can change the nomination under a life insurance policy.
