https://www.taxtmi.com/caselaws?id=446680 The Madras HC held that a nominee's rights under an insurance policy depend on their relationship to the deceased. Under Section 39(7) of the Insurance Act, 1938, only parents, spouse, children or combinations thereof qualify as beneficiary nominees with absolute ownership rights. Other nominees, including brothers, are merely collector nominees who hold funds in trust for legal heirs. The court directed the insurance company to pay the assured sum directly to the petitioner and her son as Class-I legal heirs under Hindu Succession Act, bypassing the brother nominee who lacked absolute ownership rights over the insurance proceeds. en-us Mon, 16 Oct 2023 00:00:00 +0530 Sat, 09 Dec 2023 10:19:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=446680 The Madras HC held that a nominee's rights under an insurance policy depend on their relationship to the deceased. Under Section 39(7) of the Insurance Act, 1938, only parents, spouse, children or combinations thereof qualify as beneficiary nominees with absolute ownership rights. Other nominees, including brothers, are merely collector nominees who hold funds in trust for legal heirs. The court directed the insurance company to pay the assured sum directly to the petitioner and her son as Class-I legal heirs under Hindu Succession Act, bypassing the brother nominee who lacked absolute ownership rights over the insurance proceeds. Case-Laws Indian Laws Mon, 16 Oct 2023 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=446680