It is mandatory to mention the name of the nominee while buying a life insurance policy from an insurance company. Usually, a person makes his wife the nominee, which ensures that the wife gets the insurance amount in case of the policyholder’s death. The opposite can also happen; if the wife buys a life insurance policy, she can make the husband the nominee.
This situation has been going on for years. In most cases, when the policyholder dies, the insurance company gives the insurance money to the nominee i.e. the husband or wife. But, the problem arises when both the policyholder and the nominee die together in an accident. In such a situation, the question arises as to who will get the insurance amount.
What does the IRDAI rule say
Recently, on June 12, 2025, a plane going from Ahmedabad to London crashed, in which many families died together. Some such cases also came to light in which both the policyholder and the nominee died. In such cases, the question is who will get the insurance money.
According to the rules of the Insurance Regulatory and Development Authority of India (IRDAI), if both the policyholder and the nominee die in an accident, the insurance company can assume that the nominee died after the death of the policyholder. This rule provides clarity regarding the insurance money in such difficult situations.
A legal heir can claim
Experts say that in such cases, the legal heir of the nominee is considered entitled to the claim. However, the insurance company makes a decision in such cases on the basis of the terms and conditions of the policy. But, generally, the legal heir of the nominee is considered entitled to the insurance amount.
The legal heir can claim the insurance amount from the insurance company. The insurance company makes the payment only after checking the documents and proof of the relationship between the claimant and the nominee. This process ensures that the insurance amount reaches the right person.
Class One and Class Two Legal Heirs can claim
In Hindu Succession Law, legal heirs are divided into two categories:
Class One Legal Heirs
These fall in the first category and include immediate relatives:
Wife
Son or Daughter
Mother
If the policyholder’s son or daughter dies, the policyholder’s grandson and granddaughter can claim the insurance amount.
Class Two Legal Heirs
If there is no one among the class one legal heir, then class two legal heirs are considered. These include relatively distant relatives, which include father, brother, sister, nephew, and niece.