IRDAI Rule: Insurance Claim Will Go to Family Even If Nominee Dies Too

Updated: 20-06-2025, 04.30 PM

When purchasing a life insurance policy, it is mandatory to mention a nominee — typically a spouse, child, or close relative — who would receive the insured sum in case of the policyholder’s death. However, a tricky situation arises when both the policyholder and the nominee pass away in the same accident. Until now, many policyholders and families were unsure who would receive the claim in such unfortunate circumstances.

IRDAI

The Insurance Regulatory and Development Authority of India (IRDAI) has clear guidelines on how such cases should be handled — ensuring that the insurance amount reaches the rightful family members.

Recent Cases Spark Fresh Attention

Following the tragic plane crash on June 12, 2025, involving a flight from Ahmedabad to London, many families faced this dilemma. In several cases, both the policyholder and nominee died together, prompting questions over who could legally claim the insurance payout.

IRDAI Rule: Nominee Assumed to Die After Policyholder

According to IRDAI guidelines, if both the policyholder and nominee die simultaneously in an accident, the insurer may assume that the nominee passed away after the policyholder. This interpretation helps determine the rightful claimant of the insurance amount and avoids disputes between family members or legal heirs.

Legal Heirs Can Claim the Insurance Amount

In such scenarios, legal heirs of the nominee are considered eligible to claim the insurance payout. The insurance company processes the claim based on the terms and conditions of the policy and after verifying the necessary documents and proof of relationship between the claimant and the deceased nominee.

This ensures that the insured sum is not left unclaimed and reaches the deserving family members.

Who Are Considered Legal Heirs?

Under the Hindu Succession Act, legal heirs are divided into two categories:

Class One Legal Heirs:

Wife
Son or Daughter
Mother
If the policyholder’s child is deceased, then grandchildren (grandson/granddaughter) can claim the amount.

Class Two Legal Heirs (if no Class One heirs are present):

Father
Brother
Sister
Nephew
Niece

What Should Families Do?

Legal heirs can approach the insurer with:

Proof of relationship
Death certificates of the policyholder and nominee
Succession certificate (if required)
Any other documents as per the insurer’s guidelines

Conclusion

This clarification from IRDAI provides peace of mind to families. Even in the unfortunate event where both the policyholder and nominee pass away together, the insurance sum will not be lost — instead, it will be handed over to the rightful legal heirs, helping to protect the family’s financial future.

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Kuldeep Singh Chundawat: My name is Kuldeep Singh Chundawat. I am an experienced content writer with several years of expertise in the field. Currently, I contribute to Daily Kiran, creating engaging and informative content across a variety of categories including technology, health, travel, education, and automobiles. My goal is to deliver accurate, insightful, and captivating information through my words to help readers stay informed and empowered.