Nominee of the Insurance Policy is Not Rightful Owner, Succession Law To Prevail : Allahabad HC

The Allahabad High Court has ruled that nominees of the insurance policy are not the rightful owners of the policy proceeds, reaffirming that succession laws will prevail.

The court clarified that Section 39(7) of the Insurance Act only enables nominees to receive the sum, not claim ownership, and does not override inheritance rights under the Hindu Succession Act.

The case arose after a woman, nominated in her deceased daughter’s insurance policy, was opposed by the son-in-law.

The Court noted conflicting views among High Courts and emphasised that nomination only facilitates receipt, not ownership. Given national importance, the Court allowed the appeal to the Supreme Court under Article 134-A of the Constitution.