Page 12 - Insurance Times August 2020

ers because NBP contracted 18.64 per cent to Rs. 1,017.67 crore in the June It’s Customer Mobile App has more
cent to Rs 49,335 crore, against Rs quarter, against ~840.89 crore in the than 34 lakh users, and it is using vari-
60,637 crore in Q1FY20 due to the same period last year. Its net profit for ous digital platforms for electronic pre-
lockdown, it is expected that the sec- the quarter rose 34 per cent to Rs. mium payments to provide a seamless
tor will post steady growth in NBP by 817.48 crore, compared to Rs. 610.68 experience to customers.
the end of the third quarter, assuming crore in the previous year.
PayTM (directly), PhonePe and
the economy bounces back. In fact, in
the fortnight ended July 15, LIC saw 46 LIC focuses on improving GooglePay (through BillDesk) are some
per cent growth in NBP over last year. of the more recent modes that are
online, digital presence available to customers for premium
At the end of Q1, the insurer issued 2
Life Insurance Corporation (LIC) of In- payment digitally, it further said.
million new policies and captured a dia, which enters its 65th year on Sep-
market share of 74 per cent in terms “Renewal premium collection transac-
tember 1, is focussing on improving its
of premium in the life insurance mar- tions through the digital infrastructure
online and digital presence to remain
ket. At the end of FY20, it had a mar- customer-centric, improve pricing and have reached an all-time high of 40.23
ket share of 75.9 per cent in policies create operational efficiencies. per cent,” it added.
and 68.74 per cent in first-year pre-
mium. “LIC has a strong online presence and In 2019-20, LIC registered a growth of
has provided a digital platform for new 25.17 per cent in new business in terms
LIC HFC's profit before tax business and servicing operations to of the first year premium. Its total first-
up 21% to Rs. 1,017 cr in both internal and external customers, year premium amounted to Rs. 1.78-
including channel platforms like banks lakh-crore at the end of March 31, 2020
Q1 and other agencies,” it said in a state- capturing 68.74 per cent market
LIC Housing Finance’s PBT rose 21 per ment. share.

Nominees have first over life insurance claims, not legal heirs

As you deal with the trauma of losing a loved one, making a life insurance claim may become daunting if you don’t
know how to go about it. One of the most important aspects to consider is the difference between the nominee and
heir when it comes to insurance claims. Insurance policy is treated as an estate of the deceased policyholder. Legal
heirs have a right over the policy as long as the assets of the deceased policyholder devolve upon her.
However, in life insurance, there is a concept known as beneficial nominee. This provision was introduced in the Insur-
ance Laws (Amendment) Act, 2015. If an immediate family member (parents, or spouse, or children) is made the
nominee, then the proceeds will go to the intended person. Legal heirs will not have any claim on the money. “If the
nominee is not survived by the insured, the proceeds will go to the legal heirs," said Mukesh Jain, corporate lawyer
and founder of Mukesh Jain and Associates, a Mumbai-based law firm.
In the absence of a nominee, the legal heir can claim the insurance proceeds. “Apart from the claim intimation letter
and other requisite documentation like death certificate, ID proof of the beneficiary, policy papers, discharge form (if
any), post mortem report and hospital records (in case of unnatural death), the legal heir needs to submit the succes-
sion certificate issued by a competent court which establishes the right of the legal heir over the assets of the de-
ceased policyholder, including the insurance proceeds," said Vatsala Sameer, company secretary, Canara HSBC Orien-
tal Bank of Commerce Life Insurance.
If there are multiple legal heirs and only one is claiming the proceeds, then all other legal heirs need to agree and
express their consent to the insurer for that. “The affidavit-cum-indemnity signed by all the legal heirs protects the
insurer from similar and separate claims under the policy," said a spokesperson from PNB Metlife Insurance Co. Ltd.
The legal heir can make a claim when there is no nomination any time before the maturity of the policy, or if the
insured has not requested a fresh nomination in case of the death of the nominee or in case of death of the nominee
after the claim is filed but before its settlement. In case the deceased has more than one child and has not nominated
all of them, a claim can be lodged only by the nominated child and the insurer shall pay the proceeds to the nominee
only. Other children can stake claim to their shares by moving a competent court of law, said the PNB Metlife spokes-
person. So get clarity on your situation and act accordingly.

12 The Insurance Times, August 2020