Consumer protection: Legal heir, not nominee, is beneficiary of policy

The high court held that the Insurance Act, a general law, must yield to the Succession Act, a special law that governs the rights of legal heirs

Kusum purchased 15 life insurance policies in the name of her unmarried daughter, Ranjeeta, and appointed herself as the nominee. Later, Ranjeeta married Anand Kumar and gave birth to a baby girl. Ranjeeta passed away when the child was just 11 months old.

 

Following her daughter’s death, Kusum claimed the insurance proceeds. However, before the claims could be settled, her son-in-law, Kumar, filed a civil suit under the Indian Succession Act, asserting that he and his minor daughter were entitled to the insurance benefits. Kusum was not even made a party to the suit. The matter was referred to the