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Judgment
A.N. Venugopala Gowda, J.—Smt. Nirmal D, took two insurance policies from the Life Insurance Corporation of India (for short TIC) being dated 13.09.2005 and 04.09.2007 and nominated her parents i.e., respondents 2 and 3 as the beneficiaries thereof. The first petitioner is said to have entered into a wedlock with Smt. Nirmal D and the second petitioner is said to have been born out of the said wedlock. Smt. Nirmal D has died on 14.11.2011. Petitioners by serving a legal notice dated 13.12.2011, demanded the settlement of said insurance policies in their favour. A reply dated 21.12.2011 having been received from the LIC, that upon receipt of necessary documents claim would be settled in favour of the nominee/s, this writ petition was filed on 16.01.2012 against the LIC, to direct the settlement of the said insurance policies in favour of the petitioners. Subsequently, respondents 2 and 3, parents of deceased Smt. Nirmal D were impleaded. Heard Sri Narayanappa, learned advocate for the petitioners and Sri Gajendran, learned advocate for the respondent No. 1 and perused the writ record.
Nomination made under S. 39 of the Life Insurance Act, 1938 does not have the effect conferring on the nominee any beneficiary interest in the amount payable under the LIC policies on the death of the assured. Nomination only indicates the hand which is authorized to receive the amount, with the payment of which, the insurer gets a valid discharge of fits liability. On the death of policy holder, if any, the amount payable under the policy would be governed by law of succession applicable to the policy holder, which may be testamentary or otherwise. The amount received, if any, under the policy by the nominee can be claimed by the legal heirs in accordance with law of succession applicable.
Respondent Nos. 2 & 3 have not entered appearance. Indisputably, they are the parents of the deceased and also the nominees of deceased. LIC vide its reply dated 21.12.2011 has made it clear that the claim would be settled upon receipt of necessary documents in their favour of nominees. Petitioners have not submitted to the LIC the related records of the said policies. In the circumstances of this case, the LIC cannot be directed to settle claims, in exercise of writ jurisdiction under Article 226 of Constitution. The remedy available to the petitioners is a suit before a Civil Court, wherein they can establish their relationship with the deceased and their lawful entitlement, to seek the settlement of the said policies by the LIC in their favour. In the said view of the matter, the writ petition is disposed of. The liberty is reserved to the petitioners to institute a suit before the Civil Court and seek settlement by the LIC, the insurance polices of the deceased Nirmal D.
The contentions raised in this writ petition are left open.
There being an interim order passed in this writ petition on 19.01.2012, same shall operate till 31.03.2014 or till the date of filing of the suit, whichever is earlier. The LIC shall not to settle the claims, if any, put forth by any person, in respect of the said two policies, till 31.03.2014 or the date of filing of a suit in the Civil Court, whichever is earlier.
No costs.