Updating Insurance Policy Nominee Details on Shriramgi General Insurance
If you booked online e-tickets with IRCTC recently. Then you definitely know about 10 lakhs travel insurance cover of Shriramgi General Insurance Company. After booking IRCTC e-ticket all users get SMS for update insurance policy nomination details on www.shriramgi.com website. So, it is necessary to know all about new rules and benefit of insurance nominees.
New Rules Benefit Insurance Nominees
Life insurance policy protects your dependents financially in the event of death or any ‘Untoward incidence’. It is very important that when you buy a life insurance policy, you carefully mention your nominee as a nominee is a person who gets assured sum in case of death of the policyholder.
According to the previous laws, nominee didn’t mean that he was the ultimate beneficiary of the insurance money, but he had to distribute the money among the insured’s legal heirs. There were a lot of confusions as the policyholder didn’t have an idea of what actually meant by a nominee. New rules have been devised and implemented now which removes much of the confusion. (These all rules also for Shriramgi General Insurance).
The new Insurance Act, 2015 clarifies on beneficial nominees. It applies to the policies that mature after March 2015. The new rule makes an immediate family as a beneficial nominee. Immediate family members include spouse, parents, and children.
Immediate Family is Beneficial Nominee
The beneficial nominee is the person who receives the insurance money. As per the new rules, if the policyholder nominates parents, spouse or children, then the insurance amount will be paid to the nominee and other legal heirs can’t make a claim for the money.
The new rules also made one more significant amendment that entitles rights to the nominee to collect the assured sum on the maturity of the policy if the policyholder survived till maturity but died before receiving the money. Earlier, a nominee could receive the benefits only if the policyholder died during the term of the policy. (You may get more help on Shriramgi insurance policy nomination form update details on official site www.shriramgi.com.)
Rules of Assignment
The rules have also been changed regarding the assignment of an insurance policy. Under the assignment process, there is a provision that the policyholder can transfer the rights of policy to other entity or another person. When the policyholder takes a loan from the bank, he can pledge the policy to the bank as collateral security. Assignment to a bank is a common process and in such cases, the bank becomes policy owner.
In the event of a death of the policyholder, the bank receives the insurance money. According to the earlier laws, upon the assignment of the policy, the original nominee would stand cancelled. And the bank would decide on paying the money to the nominee. But with the new rules, it doesn’t cancel the original nominee. The insurance provider will pay for the outstanding due to the bank and remain money to the nominee.
The new rules also have made provision for the partial payment. It means if the policyholder has a policy with an assured sum of say, Rs 40 lakhs and for the bank loan Rs 20 lakh security is needed, then the policyholder can assign only 50% of the policy.
The assignment is different from taking a term plan for covering a loan. In term plans, you purchase insurance under a group; the bank becomes the policyholder automatically and you become the life assured. With such plans, as the outstanding loan decreases, the assured sum decreases too. In the event of the death of the policyholder, the insurer will pay the bank the outstanding dues and the nominee get the remaining money.
The assignment can be used for different purposes. But the new rules empower the insurer rights to reject the assignment if it finds the insurance leading to a trading of insurance. When the assignment is for other than a bank loan, the nomination stands for a cancellation.
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