Report No. 66
8.37. Effect of nomination.-
A nomination under section 39, Insurance Act, like a testamentary disposition, speaks only after death; but the analogy ends there. No title to the policy moneys passes-in praesenti or in future-by the nomination. If the title passed to the nominee on the death of the policy-holder, his legal status would have been indistinguishable from that of an assignee, or a legatee, the assignment or legacy taking effect on the death of the policy-holder.1 In the contemplation of the statute, the right of a nominee is a mere right to collect the proceeds of the policy, and the right has been given only to obviate the inconvenience of obtaining representation to the estate of the deceased policy-holder or a succession certificate.2
1. L.I.C. v. United Bank, AIR 1970 Cal 513 (516) (B.C. Mitra & S.K. Mukherjea, JJ.).
2. LI.C. Limited v. United Bank, AIR 1970 Cal 513 (516).