The beneficial nominee of a life insurance policyholder is eligible to receive the proceeds of a life insurance claim in the event of the policyholder's death. However, the nominee must be an immediate family member- parent, spouse, or children. In that case, the legal heir will not have a claim on the money.
The legal heirs also cannot seek details of the insurance policy, if they are not mentioned as the nominee, reckoned the Central Information Commission (CIC).
The CIC's order came in connection with an appellant filing an appeal under the Right to Information Act, 2005 before the Central Public Information Officer (CPIO), Life Information Corporation of India (LIC), Chhattisgarh.
The appellant asked for the details of nominees and policies held by his late father, reported The Financial Express.
The request, however, was turned down by the CPIO after which, the appellant filed a first appeal (FAA), seeking the information on November 18, 2020. However, CPIO's order was upheld. Unsatisfied with the order, the person filed a second appeal, an order which was passed last month, the report added.
The LIC CPIO, in an order dated September 21, 2022, said that disclosing the details of the policies to the appellant would affect the commercial interest of the third party. The order noted that providing such information was exempted under section 8 (1) (d) of the RTI Act, 2005.
The CIC ordered that the benefits of the policies can only be provided either to the policyholder or the beneficiary (nominee) as indicated in the policy.
“The Commission observes that just because the appellant is the legal heir of his deceased father does not give him the right to receive the requested information. Hence, the legal heirs do not have any right to receive the policy-related details," the order noted.
Adjudging that the legal heir doesn't give the appellant the right to receive the request for the information, the order said that the commission was right in denying the request.