Report No. 82
2.4. Gujarat view.-
The Gujarat High Court1 has also held that where a policy holder, after making a nomination in the policy, dies intestate, the rightful claimants to the sum assured under the policy of insurance are the legal heirs of the deceased policy holder, and not the nominee in the insurance policy. The Gujarat decision is based on the theory that the nominee is a collection agent, having only a right to receive and collect the money's on behalf of original claimants. If there is a will (made by the policy holder), the legatee under the will would get the amount. If the policy holder has died intestate, his legal heirs would get it, according to the Gujarat judgment.
1. AIR 1977 Guj 134 (0.P. Desai & M.P. Thakhar, JJ.) (reviews case law).