See after the amendment the nominee has right over the insurance claim though mother can file a suit claiming the amount from the wife.
My brother in law died in 2018 . He left wife , 2 minor kids and parents ... mother age 75 father 78both. He left among other assets 4 major insurance policy amounting to about 2.5 cr with nomination of wife. Now his wife is not ready to share the amount with mother (being class 1 hier and right of 1/4th share of insurance policies) Quoting that in 2015 IRDA RULE that she is the nominee and beneficial nominee so she has right on full amount of insurance. Though Mother is class 1 legal hier she cant claim. Now she is not even living with them .what is the option now with mother in law.. How can she claim amount from her. Under which section. Is their any court ruling governing insurance policy amounts.
See after the amendment the nominee has right over the insurance claim though mother can file a suit claiming the amount from the wife.
Parents children and spouse are only beneficiary nominee in insurance claim. Their right to claim over the insurance claim proceeds override the provision of general rule of intestate succession as to the right of legal heirs.
Nominee is only trustee for legal heirs
2) your mother can issue legal notice to insurance company not to pay to her daughter in law insurance money
3) also file suit to claim one fourth share in insurance money and other property of her deceased son
This rule is already over sight by SC , nominee right restricted to receive benefit in hand than assets will distribute acc. To inheritance law. Mother is entitle to 1/4th in everything left by husband. File partition suit.
Section 39 of the Insurance Act says the appointed nominee will be paid, though he/she may not be the legal heir. The nominee, in turn, is supposed to hold the proceeds in trust and the legal heir can claim the money.
Reserve Bank of India (RBI) guidelines specifies that the deceased’s nominee would receive the money in the capacity of a trustee of legal heirs.
A nominee is merely a trustee, not the owner. Mother can file for succession certificate in testamentary court and get her share being the class 1 legal heir.
According to law, a nominee is a trustee and not the owner of the assets. In other words, she is only a caretaker of assets. The nominee will only hold asset as a trustee and will be legally bound to transfer it to the legal heirs. mother can file suit and claim her share in insurance money and in other property.
as far as the policy is concerned the nominee is the heir. Nobody can claim other than the nominee. It is not a property which can be divided as the person has already stated who shall be the heir.
The parents can file a maintenance application.
Regards
She has all the rights in her sons property. She can seek partition from court as well as demand her share
She is no doubt if nominee then is entitled for whole of the money but on the other hand she can't run away with the bounty so don't worry, as per MWPSC Act 2007 has to look after the parents of her spouse so she can't run away , start legal proceedings under this act if she denies, definitely parents will win.
Your mother should file an injunction suit agaisnt the insurance company restraining them from settling the death claim to her insofar as her share in the claim amount is concerned.
As far as nominee is concerned, she can only receive the claim amount and has to disburse the same equally to all the legal heirs or successors in interest to the deceased policy holder.