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Tag: Nominee

  • How do nominees differ from authorized heirs?

    Can an individual turn into the proprietor of a flat or property merely by the advantage of being made a nominee within the type submitted to a housing society? Also, does a will or testomony supersede the nomination in such a case? And, is a probate obligatory for wills?

    —Name withheld on request

    It is settled regulation {that a} nominee doesn’t turn into the proprietor of the property. Nominee holds the property in belief for the authorized heirs.

    The position of a nominee in case of residences / flats in housing society or a condominium is restricted to that of a consultant of the authorized heirs of the deceased member and in no method turn into the successor changing the rightful authorized heirs. No rights and advantages are created and prolonged in direction of the nominee when the authorized heirs are alive.

    Nominee is simply an individual with whom the society or a condominium can cope with pursuant to the demise of the member, up till the rightful authorized inheritor doesn’t come ahead to hunt switch of the rights within the property.

    The purpose behind nomination has been that title or rights to the property can’t stay in abeyance and therefore till the rightful authorized heirs comes ahead to hunt a switch, there’s a one who can oversee the affairs of the property.

    In case the deceased has left behind a will and has additionally nominated an individual by advantage of a nomination type, then the individual to whom the property is bequeathed below the need, shall be entitled to the property versus the one that has been nominated below a nomination type. A nominee’s rights doesn’t supersede the rights of a beneficiary below a will.

    In a nutshell, a will would prevail over nomination.

    Under Indian succession legal guidelines, a probate of a will is obligatory if the need or codicil has been executed in Kolkata, Chennai and/or Mumbai, or, if the immovable property is located in any of the aforesaid cities even when the need is executed in some other place.

    Harsh Parikh is companion, Khaitan & Co.

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    Updated: 29 Aug 2023, 11:04 PM IST

  • Why together with a nominee to your Demat account is solely not ample

    As India’s investor neighborhood grows, further persons are turning to stock market investments to develop their wealth. While many merchants rely upon the nomination course of of their demat accounts to verify a seamless swap of wealth to their relations, it’s important to know the restrictions of this course of. An over-reliance on this nomination course of is a harmful gamble which is able to depart your financial legacy in jeopardy.

    To begin with, a nominee is a person appointed by the demat account holder to acquire the securities inside the event of the latter’s demise. This affiliation may appear to be a foolproof strategy to ensure that your property attain the meant recipient; nonetheless, this is not the case. Nominees aren’t the approved heirs to your property; they merely act as a custodian to facilitate the swap of wealth.

    Why would you like a will?

    A will is a approved doc that lets you decide how your property are distributed amongst your beneficiaries after your demise. It ensures that your wealth is transferred to the meant recipients, thus avoiding any disputes amongst family members. In the absence of a will, the property are distributed in response to the related succession authorized pointers, which cannot align collectively along with your wants.

    For event, let’s take into consideration that Kumar has nominated his eldest son as a result of the nominee in his demat account. In the event of Kumar’s demise, the securities might be transferred to his son, who would act as a custodian. However, if Kumar’s will mentions that the shares are to be distributed amongst his three children equally, the nominee is legally sure to distribute the property accordingly. Thus, a will supersedes the nomination inside the demat account, emphasizing the importance of getting a well-drafted will.

    The repercussions of not having a will

    The absence of a will can depart the distribution of property to be determined by intestacy authorized pointers, which continuously do not align with the deceased’s wants. This might find yourself in protracted approved battles, strained family relationships, and doubtlessly substantial financial losses—eroding the value of the property.

    As we technique the next decade, India’s unclaimed property, for the time being at ₹1.20 trillion, are poised to develop exponentially due to the quick adoption of fin-tech, which has the potential to render paper trails outdated. With the usual strategy of accessing inheritance in India takes a number of 12 months and costs a minimal of ₹1.5 lakh, we must always acknowledge the need to find environment friendly choices that be a part of households with their rightful inheritance, harmonizing know-how and customized.

    How can one go about drafting a will?

    Drafting a will begins with taking an inventory of your property, along with property, investments, and all completely different worthwhile possessions. Next, decide in your beneficiaries and specify the distribution of property amongst them. Appoint a trusted executor to carry out your wants and deal with the property. Consider naming a guardian for minor children, if related. Consult with a approved expert or use a great on-line will platform to verify your testimony adheres to native authorized pointers and legal guidelines.

    Traditionally, drafting a will involved consulting a lawyer or expert will writer, sometimes proving to be time-consuming, expensive, and inaccessible to many. Typically, it would most likely worth as a lot as ₹2 lakh to place in writing a legally reliable will by the use of a lawyer in India and a median of 1 month to get a will drafted. However, with technological developments, on-line will platforms have emerged, simplifying the tactic and offering a better completely different. These on-line platforms data prospects by creating legally reliable wills with customizable templates tailored to specific individual needs and will ship a draft in a number of hours and value as little as ₹500 for a draft of the necessity.

    Safeguard your financial legacy

    To secure your financial legacy and ensure that your property are distributed in response to your wants, it is strongly actually useful that you do not rely solely on the nomination course of in your demat account. It is essential to have a well-drafted will in place. The introduction of on-line will platforms has made this course of additional accessible than ever sooner than. By benefiting from these sources and understanding the restrictions of demat nominations, you probably can defend your wealth and provide peace of ideas to your loved ones members.

    Vishnu Chundi is founder and CEO of AasaanWill

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  • Why together with a nominee to your Demat account is just not ample

    As India’s investor neighborhood grows, additional individuals are turning to stock market investments to develop their wealth. While many merchants depend upon the nomination course of of their demat accounts to verify a seamless swap of wealth to their members of the family, it’s important to know the restrictions of this course of. An over-reliance on this nomination course of is a harmful gamble which is able to depart your financial legacy in jeopardy.

    To begin with, a nominee is a person appointed by the demat account holder to acquire the securities throughout the event of the latter’s demise. This affiliation may appear to be a foolproof method to make it possible for your property attain the meant recipient; nonetheless, this is not the case. Nominees aren’t the approved heirs to your property; they merely act as a custodian to facilitate the swap of wealth.

    Why would you like a will?

    A will is a approved doc that lets you decide how your property are distributed amongst your beneficiaries after your demise. It ensures that your wealth is transferred to the meant recipients, thus avoiding any disputes amongst family members. In the absence of a will, the property are distributed in response to the related succession authorized pointers, which can’t align collectively together with your wants.

    For event, let’s take into consideration that Kumar has nominated his eldest son as a result of the nominee in his demat account. In the event of Kumar’s demise, the securities might be transferred to his son, who would act as a custodian. However, if Kumar’s will mentions that the shares are to be distributed amongst his three kids equally, the nominee is legally sure to distribute the property accordingly. Thus, a will supersedes the nomination throughout the demat account, emphasizing the importance of getting a well-drafted will.

    The repercussions of not having a will

    The absence of a will can depart the distribution of property to be determined by intestacy authorized pointers, which steadily do not align with the deceased’s wants. This might find yourself in protracted approved battles, strained family relationships, and doubtlessly substantial financial losses—eroding the price of the property.

    As we technique the next decade, India’s unclaimed property, in the meanwhile at ₹1.20 trillion, are poised to develop exponentially due to the quick adoption of fin-tech, which has the potential to render paper trails old-fashioned. With the usual strategy of accessing inheritance in India takes just a few 12 months and costs a minimal of ₹1.5 lakh, we should always acknowledge the need to find environment friendly choices that be part of households with their rightful inheritance, harmonizing know-how and customized.

    How can one go about drafting a will?

    Drafting a will begins with taking an inventory of your property, along with property, investments, and all completely different worthwhile possessions. Next, decide in your beneficiaries and specify the distribution of property amongst them. Appoint a trusted executor to carry out your wants and deal with the property. Consider naming a guardian for minor kids, if related. Consult with a approved expert or use an excellent on-line will platform to verify your testimony adheres to native authorized pointers and legal guidelines.

    Traditionally, drafting a will involved consulting a lawyer or expert will writer, sometimes proving to be time-consuming, expensive, and inaccessible to many. Typically, it would most likely worth as a lot as ₹2 lakh to place in writing a legally legit will by the use of a lawyer in India and a median of 1 month to get a will drafted. However, with technological developments, on-line will platforms have emerged, simplifying the strategy and offering a higher completely different. These on-line platforms info clients by creating legally legit wills with customizable templates tailored to explicit individual desires and will ship a draft in just a few hours and worth as little as ₹500 for a draft of the necessity.

    Safeguard your financial legacy

    To secure your financial legacy and make it possible for your property are distributed in response to your wants, it is strongly actually useful that you do not rely solely on the nomination course of in your demat account. It is essential to have a well-drafted will in place. The introduction of on-line will platforms has made this course of additional accessible than ever sooner than. By benefiting from these sources and understanding the restrictions of demat nominations, you probably can defend your wealth and provide peace of ideas to your loved ones members.

    Vishnu Chundi is founder and CEO of AasaanWill

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  • Common the reason why time interval insurance coverage protection claims get rejected

    Concealing pre-existing diseases: When shopping for a time interval insurance coverage protection plan, prospects should current all supplies information regarding their income particulars, properly being standing and medical historic previous, and life-style truthfully. If candidates withhold or give false information, it may presumably develop right into a reputable set off for rejecting a declare.

    Sunil Sharma, president, chief risk officer and actuary at Kotak Mahindra Life Insurance, acknowledged, “If the insured did not disclose his proper properly being standing or any current personal medical historic previous impacting his properly being whereas shopping for a protection, his declare could get rejected. The life insurance coverage protection insurance coverage insurance policies are normally based on assessing the properly being declarations or information the candidates share. Moreover, if the insured did not disclose his proper occupation/curiosity, which might be hazardous in nature whereas shopping for the protection, and the information was so essential that had he disclosed proper particulars, this might need led to the denial of safety.”

    Delay in premium payment: A lapsed policy cannot fetch any benefits. Sometimes, policyholders forget to pay timely premiums. For this, insurance companies offer a grace period. This grace period can go up to 30 days. However, if the policyholder does not pay the premium, the policy is marked as a lapse. Hence, policyholders must ensure they pay the premium towards their term plan on or before the payable date. For instance, the insurance company will reject the claim if a claim is made even a day after the policy lapse.

    Withholding information about existing insurance policies: When purchasing a term plan, it is necessary to disclose all the current and previous insurance policies to the insurer. Rhishabh Garg, head of Term Life Insurance, Policybazaar.com, said, “Withholding information about existing insurance policies can get your term insurance claim rejected, as this is relevant information essentially required by the policymaker for a complete risk assessment.”

    Undisclosed life-style alternatives: Information regarding life-style habits like smoking, ingesting, and unhealthy consuming, must be disclosed to the insurer whereas looking for the time interval insurance coverage protection. Moreover, if any person is inclined to journey sports activities actions like deep-sea diving, paragliding and plenty of others., they should inform the insurer sooner than making use of for a time interval plan. This will help the insurance coverage protection agency to evaluate the individual’s case larger.

    Absence of updated nominee particulars: Failing to interchange the nominee particulars requires a list of documentation to indicate the street of succession. This course of is cumbersome and creates hindrances in insurance coverage protection declare settlement. If the insurance coverage protection agency can’t affirm the approved heir, it may lead to declare rejection. Indraneel Chatterjee, Co-founder of RenewBuy, acknowledged, “Sometimes, declare settlements may get rejected throughout the absence of a nominee. If the policyholder forgets to interchange the nominee’s establish, it may presumably lead to declare rejection. In many circumstances, the nominee would not know that he is entitled to a declare and reaches out to the insurer very late when the declare investigation turns into troublesome or unimaginable.”

    Fraud: “Refers to insurance fraudsters who take out a life insurance policy for someone who is terminally ill, or in some cases impersonate persons who are already dead just so that they can avail of the life cover, said Satishwar B., MD & CEO, Aegon Life Insurance.

    Grievance redressal mechanism: If you think the insurer outrightly rejects your claim without giving you any valid reason, you can approach the Grievance Redressal Officer. Most insurers have multiple modes of access for policyholders and nominees.

    Firstly, nominees can approach the insurance company from where the policyholder has purchased the insurance coverage. Every insurance company has a dedicated grievance handling cell as mandated by the Insurance Regulatory and Development Authority of India (IRDAI). The Insurance company usually lists the details of its grievance cell in the policy document. The first thing that a nominee should do is visit the insurer’s website and go to the customer service or claims section, as appropriate. There, the company lists all the ways to contact them, typically including a WhatsApp number, email address, chatbot, a toll-free number to call, and sometimes the nearest branch. These services are available even if you purchase the policy through an agent.

    The nominee can call on the number or write a letter or mail mentioning the issue. Suppose the nominee does not get a response within 15 days. In that case, he can contact the insurance company’s regional or central office’s grievance cell, stating that the grievance has not been acknowledged or addressed.

    In case the issue gets directed to IRDAI, one can reach out to a Grievance Redressal Officer (GRO) to register a complaint at a higher level. There is also a cell for the redressal of grievances at IRDAI, where policyholders can register their complaints with the regulator under the “Bima Bharosa system” (bimabharosa.irdai.gov.in).

    Even after that, the nominee can technique the ombudsperson if the nominee would not receive choices. The ombudsperson will hear the case and cross judgment, which could lastly help a nominee clear up the issue.

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  • Common the reason why time interval insurance coverage protection claims get rejected

    Concealing pre-existing diseases: When shopping for a time interval insurance coverage protection plan, prospects must current all supplies knowledge regarding their income particulars, nicely being standing and medical historic previous, and life-style actually. If candidates withhold or give false knowledge, it may probably develop right into a official set off for rejecting a declare.

    Sunil Sharma, president, chief menace officer and actuary at Kotak Mahindra Life Insurance, acknowledged, “If the insured did not disclose his proper nicely being standing or any current non-public medical historic previous impacting his nicely being whereas shopping for a protection, his declare could get rejected. The life insurance coverage protection insurance coverage insurance policies are normally based on assessing the nicely being declarations or knowledge the candidates share. Moreover, if the insured did not disclose his proper occupation/curiosity, which could be hazardous in nature whereas shopping for the protection, and the info was so necessary that had he disclosed proper particulars, this may need led to the denial of safety.”

    Delay in premium payment: A lapsed policy cannot fetch any benefits. Sometimes, policyholders forget to pay timely premiums. For this, insurance companies offer a grace period. This grace period can go up to 30 days. However, if the policyholder does not pay the premium, the policy is marked as a lapse. Hence, policyholders must ensure they pay the premium towards their term plan on or before the payable date. For instance, the insurance company will reject the claim if a claim is made even a day after the policy lapse.

    Withholding information about existing insurance policies: When purchasing a term plan, it is necessary to disclose all the current and previous insurance policies to the insurer. Rhishabh Garg, head of Term Life Insurance, Policybazaar.com, said, “Withholding information about existing insurance policies can get your term insurance claim rejected, as this is relevant information essentially required by the policymaker for a complete risk assessment.”

    Undisclosed life-style picks: Information regarding life-style habits like smoking, ingesting, and unhealthy consuming, ought to be disclosed to the insurer whereas purchasing for the time interval insurance coverage protection. Moreover, if someone is inclined to journey sports activities actions like deep-sea diving, paragliding and plenty of others., they should inform the insurer sooner than making use of for a time interval plan. This will help the insurance coverage protection agency to guage the individual’s case greater.

    Absence of updated nominee particulars: Failing to switch the nominee particulars requires a listing of documentation to point out the highway of succession. This course of is cumbersome and creates hindrances in insurance coverage protection declare settlement. If the insurance coverage protection agency can’t affirm the approved heir, it may end in declare rejection. Indraneel Chatterjee, Co-founder of RenewBuy, acknowledged, “Sometimes, declare settlements may additionally get rejected throughout the absence of a nominee. If the policyholder forgets to switch the nominee’s determine, it may probably end in declare rejection. In many circumstances, the nominee would not know that he is entitled to a declare and reaches out to the insurer very late when the declare investigation turns into troublesome or unimaginable.”

    Fraud: “Refers to insurance fraudsters who take out a life insurance policy for someone who is terminally ill, or in some cases impersonate persons who are already dead just so that they can avail of the life cover, said Satishwar B., MD & CEO, Aegon Life Insurance.

    Grievance redressal mechanism: If you think the insurer outrightly rejects your claim without giving you any valid reason, you can approach the Grievance Redressal Officer. Most insurers have multiple modes of access for policyholders and nominees.

    Firstly, nominees can approach the insurance company from where the policyholder has purchased the insurance coverage. Every insurance company has a dedicated grievance handling cell as mandated by the Insurance Regulatory and Development Authority of India (IRDAI). The Insurance company usually lists the details of its grievance cell in the policy document. The first thing that a nominee should do is visit the insurer’s website and go to the customer service or claims section, as appropriate. There, the company lists all the ways to contact them, typically including a WhatsApp number, email address, chatbot, a toll-free number to call, and sometimes the nearest branch. These services are available even if you purchase the policy through an agent.

    The nominee can call on the number or write a letter or mail mentioning the issue. Suppose the nominee does not get a response within 15 days. In that case, he can contact the insurance company’s regional or central office’s grievance cell, stating that the grievance has not been acknowledged or addressed.

    In case the issue gets directed to IRDAI, one can reach out to a Grievance Redressal Officer (GRO) to register a complaint at a higher level. There is also a cell for the redressal of grievances at IRDAI, where policyholders can register their complaints with the regulator under the “Bima Bharosa system” (bimabharosa.irdai.gov.in).

    Even after that, the nominee can technique the ombudsperson if the nominee does not receive choices. The ombudsperson will hear the case and cross judgment, which could lastly help a nominee clear up the issue.

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  • Should I proceed with life insurance coverage protection?

    I’ve been shopping for nicely being and life insurance coverage protection insurance coverage insurance policies for the ultimate a couple of years merely to keep away from losing on taxes. I’ve certainly not made any claims from my nicely being protection to date. Currently, I’ve seven life insurance coverage protection insurance coverage insurance policies. Do I have to proceed with them?

    —Name withheld on request

    The principal purpose of buying insurance coverage protection should be security in opposition to sudden events, which can end in large financial loss. The chance of incidence of such events could possibly be very low. That’s why premiums charged are a small fraction of the sum assured.

    You should protect the medical medical health insurance protection nevertheless take a look at it for passable sum assured. As a rule of thumb, your medical medical health insurance sum assured should be equal to your annual earnings.

    You should put collectively knowledge on the entire 7 insurance coverage protection insurance coverage insurance policies. If these are standard endowment plans, it is best to check the anticipated return from these plans. Often the tax-adjusted return for standard plans are lower than totally different funding avenues. In such a case, you may hand over these life insurance coverage protection. Do assure that you have a time interval insurance coverage protection plan. Such a plan would pay a lump sum throughout the event of your dying to your nominee. The sum assured of time interval insurance coverage protection should be in any case equal to 10 events of your annual earnings.

    I’ve a floater nicely being protection of ₹5 lakh for the ultimate 5 years, and now I’ve some nicely being factors. Can I take a top-up plan any time all through the 12 months or solely on the time of renewal to increase my sum insured?

    —Name withheld on request

    The start date of a top-up plan is neutral of the underside plan. It should not be obligatory to attend for the renewal of the underside plan or purchase a top-up plan from the equivalent insurer.

    Top-up plans work like frequent medical medical health insurance plans, in addition to they carry a deductible. Claims as a lot because the deductible amount are often not coated under the top-up plan. Any amount exceeding the deductible could also be reimbursed from the top-up plan. For occasion, you may buy a top-up plan with a deductible of ₹5 lakh. Claims as a lot as ₹5 lakh could also be claimed from the underside plan, and any additional declare could also be filed with the top-up plan.

    There are two kinds of deductibles prevalent: one utilized to each declare, and the other based mostly totally on mixture claims of the 12 months. The latter chance is significantly larger. For event, in case you might be hospitalized thrice in a 12 months, with a imply bill of ₹2 lakh each time, you might be reimbursed ₹1 lakh from the top-up plan if the mix deductible is utilized. However, if the deductible had been to be utilized on each declare, then nothing will be payable.

    You should additionally bear in mind enhancing the sum assured in your current plan. Many insurers provide to increase the sum assured to the following slab with none modern medical underwriting.

    Abhishek Bondia is principal officer and managing director, SecureNow.in.

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