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Change of Nomination can be done by the Policyholder any time during the term of
the Policy and any number of times. For this, the policy holder has to give a
notice in a prescribed form to the insurer and getting it endorsed at the back
of the Policy. Further, Nomination can be removed any time by the Policyholder
without giving prior notice to the Nominee.
Nomination can be done only by a policyholder who is a major holding Policy Bond
in his own name. In the case of Children's Policies, Nomination is not done
until the Child becomes major.
Under Nomination, the Nominee gets only the right to receive the policy money in
the event of the death of the Policyholder. Nomination does not pass on the
property in the Policy. If Nominee dies when the Policyholder is still surviving
then the nomination would be ineffective. Nomination has no effect if the
Policyholder is surviving. If Nominee dies after the death of the policyholder
but before receiving policy money, then also Nomination becomes ineffective and
money can be claimed only by the Legal Heirs of the Policyholder.
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