News

The Calcutta High Court recently passed a judgement in a case where it has directed the insurance company (LIC of India in this case) to split the claim amount between the dependents of the life insured despite there being just one nominee named in the policy.
This decision has created quite a buzz among the legal departments in insurance companies as it can have far reaching impact on the claims experience of the future.

In this case, a man and his two sons were murdered on 24th January 2001. One of the sons had an insurance policy bought from LIC for a sum assured of Rs.300,000, the nominee for which was his wife. The widowed mother wrote to LIC and later moved to court to claim a part of the sum assured. The court directed LIC to split the sum assured, one third being payable to the mother of the life assured and rest to the nominee (wife).