Listen to this article
The whole article read aloud, about 9 minutes
The audio could not be played here. Open this page in Chrome or Safari and try again.
The nominee is the person you name in your policy to receive the money if you die. With the right name on record, the insurer can pay that person directly. When life changes — marriage, a child, the nominee’s death — you can change the nominee at any time before the policy matures. Here is what Section 39 of the Insurance Act, 1938 says, with a letter to request the change.
Why the nominee matters
- It is clear who gets paid: once the insurer pays, in good faith, the nominee named in the policy or registered in its records, it has met its obligation (Section 39(2)).
- An old nominee still on record can be paid: unless you give the insurer written notice of a change, the insurer is not liable for paying the nominee on its records (Section 39(2)). That is why updating after marriage, or after a nominee’s death, matters.
- If every nominee dies before the money becomes payable: the money goes to the policyholder’s heirs, legal representatives or the holder of a succession certificate (Section 39(5)) — which means more paperwork for the family.
Section 39 in brief
| Point | What the Act says | Section |
|---|---|---|
| Who and when | A person who holds a life policy on their own life can nominate one or more persons, when taking the policy or at any time before it matures | 39(1) |
| Minor nominee | The policyholder can appoint someone, in the way the insurer sets out, to receive the money while the nominee is a minor | 39(1) |
| Change or cancel | At any time, by an endorsement or a will — but the insurer must get written notice | 39(2) |
| Insurer’s acknowledgement | The insurer must give written acknowledgement of registering a nomination or a change; it may charge a fee set by regulations | 39(3) |
| Assigning the policy | A transfer or assignment under Section 38 cancels the nomination automatically. But an assignment for a loan — a policy loan from the same insurer, or a loan from a lender such as a bank — does not cancel it; the nominee’s rights are reduced only to the extent of the lender’s interest. If a nomination was cancelled by an assignment and the policy is re-assigned to you on repaying a loan from someone other than the insurer, that nomination revives automatically | 39(4) |
| Death after maturity, before payment | The nominee is entitled to the proceeds | 39(11) |
IRDAI’s Master Circular on Life Insurance Products (12 June 2024, clause 6) also says the nominee can be changed at any time during the policy term through a simple process. Under the Master Circular on Protection of Policyholders’ Interests (5 September 2024), the insurer must acknowledge a nominee-change request immediately and make the change within 7 days.
Health and motor policies too: Section 39 is about life policies. Health and general policies also carry nominee details, and under IRDAI’s Master Circular on Protection of Policyholders’ Interests the same rule applies to changing them: immediate acknowledgement and the change within 7 days (health page 119, general page 132).
More than one nominee: if your insurer’s nomination form has space for each nominee’s share, fill it in clearly.
Nominee vs legal heirs: who finally owns the money? (Section 39(7))
When the policyholder dies, the insurer pays the nominee (Section 39(6)). Whether the money then belongs to the nominee, or other legal heirs can claim a share, depends on who the nominee is.
| Who the nominee is | What the Act says |
|---|---|
| Parents, spouse, children (or any of them) | The nominee is “beneficially entitled” to the money — a beneficial nominee. Other legal heirs generally cannot claim a share of it (Section 39(7)) |
| Anyone else (e.g. a brother, friend or relative) | Section 39(7) does not apply. The insurer still pays this nominee, but the Act does not make them the owner of the money. Who finally gets it is decided by succession law (or the will, if there is one) — so this nominee may only be receiving the money on behalf of the heirs, much like a trustee |
Section 39(7) comes with conditions:
- It applies only to a life policy taken on your own life (Section 39(7)).
- If it is proved that the policyholder did not have full title to the policy, the nominee does not get this right (Section 39(7)).
- If the policyholder owed money, creditors keep their right to be paid from the policy proceeds (Section 39(9)).
- If a beneficial nominee dies after the policyholder but before the money is paid, their share goes to that nominee’s own heirs (Section 39(8)).
- It applies to policies that become payable after the Insurance Laws (Amendment) Act, 2015 came into force (Section 39(10)).
- Section 39 does not apply to policies taken under Section 6 of the Married Women’s Property Act; those follow separate rules (Section 39(12)).
If there is a family dispute over inheritance, or a doubt about who should get how much, consult a lawyer. This explains what the Act says; it is not legal advice.
When to review your nominee
- When you marry or have a child
- When a nominee dies
- When the nominee is a minor and no appointee is named, or the appointee is no longer available
- After you repay a bank loan for which the policy was assigned
- As soon as the policy document arrives — check the name and spelling
How to change the nominee: sample letter
Most insurers have their own nomination change form, at the branch or on their website. Fill it in and hand it in with the cover letter below and copies of your ID and the new nominee’s ID. Keep the insurer’s acknowledgement or endorsement.
You can often do it online too: many insurers let you log in to their customer portal or mobile app and raise a nominee change request there. IRDAI has told all insurers to try to set up technology that lets policyholders submit service requests online and track their status (Master Circular on Protection of Policyholders’ Interests, page 146, para 19). This is not a strict rule, so whether the option exists depends on your insurer. Look for a “Service request” or “Nomination” option on the insurer’s official website or app. Type the website address yourself instead of tapping links in an SMS or email. Even when you change it online, keep the request number and the endorsement you receive later. If there is no online option, use the letter below.
Nominee change request letter
Tap a yellow blank to fill in your details. What you type stays on your phone; nothing is saved by us. Close this tab when you are done.
The Policy Servicing Department,
Date:
Subject: Request to change the nominee under policy no.
Dear Sir/Madam,
I am the policyholder of the above policy. I request you to change the nominee as below.
Present nominee:
New nominee:
Relationship to me:
New nominee's date of birth:
Appointee (only if the new nominee is a minor):
I enclose your nomination change form, filled in and signed, along with: .
Please register the change, acknowledge this request, and send me the endorsement confirming the new nominee.
Yours faithfully,
File downloads may not work inside WhatsApp / Facebook / Instagram. Use "Copy letter", or tap ⋮ at the top and choose "Open in Chrome / Safari".
This is only a sample. Change it to fit your situation.
An example (imaginary)
Srinivas from Nellore (name imaginary) named his mother as nominee on a term policy he bought before marriage. He married in 2026 and wants to add his wife as a nominee too.
| Date | What happens |
|---|---|
| 05-11-2026 | He downloads the insurer’s nomination change form, fills in both his mother’s and his wife’s names, and hands it in at the branch with the cover letter, getting his copy signed as received. |
| By 12-11-2026 | The 7-day period ends. The insurer registers the change and sends an endorsement. |
| Afterwards | He keeps the endorsement with the policy document and tells his family where it is. |
Words you will see
| Word | Plain meaning |
|---|---|
| Nominee | The person who receives the policy money if the policyholder dies |
| Appointee | An adult who receives the money for a nominee who is a minor |
| Endorsement | The insurer’s written record of a change made to the policy |
| Assignment | Transferring the rights under a policy to another person or a bank (e.g. for a loan) |
| Beneficial nominee | A parent, spouse or child named as nominee — they own the money, not just receive it (Section 39(7)) |
| Succession certificate | A court document letting heirs collect a deceased person’s money or property |
Myths and facts
| Myth | Fact |
|---|---|
| Once named, a nominee cannot be changed | You can change it any time before the policy matures (Section 39(1), (2)) |
| Only one nominee is allowed | The Act says “person or persons” — you can name more than one |
| Naming a young child is enough | The Act lets you appoint someone to receive the money while the nominee is a minor (Section 39(1)) — name that person too |
| If the family knows, the insurer need not be told | Without written notice, the insurer can pay the old nominee on its records (Section 39(2)) |
| Whoever the nominee is, the money is fully theirs | Generally only when the nominee is a parent, spouse or child (Section 39(7)); any other nominee may have to hand the money to the legal heirs under succession law |
What to check
- Who is the nominee on each of your policies today? Are the names spelt correctly?
- If a nominee is a minor, is an appointee named?
- Have you received the insurer’s acknowledgement or endorsement for your change?
- If the policy was assigned for a loan, have you asked the insurer about the nomination after repaying?
- Does your nominee or family know where the policy papers are?
When the nominee claims: IRDAI’s Citizens’ Charter says a death claim that needs no investigation is to be settled within 15 days (page 152) — full claim timelines are in this article. To check whether a late family member’s policy money is lying unclaimed, search IRDAI’s Bima Bharosa unclaimed amount page.
If the change is not made within 7 days, see how to complain to your insurer. To change your address or phone number, there is a separate letter in this article.
Sources
- The Insurance Act, 1938 (consolidated copy published by IRDAI): Section 39 — nomination (39(1)–(5), (11)). We also read the text of the Sabka Bima Sabki Raksha (Amendment of Insurance Laws) Bill, 2025 introduced in Parliament — it does not change Section 39.
- IRDAI Master Circular on Life Insurance Products, 12-06-2024: clause 6 (nomination)
- IRDAI Master Circular on Protection of Policyholders’ Interests, 05-09-2024: service requests — immediate acknowledgement, change within 7 days (pages 105–106); service requests in health (page 119) and general (page 132) policies; Citizens’ Charter — registration / change of nomination in 7 days, death claims not needing investigation in 15 days (page 152)
All sources checked on 25 October 2026. Last updated: 25 October 2026.