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Under Section 39(7), where a policyholder on his own life nominates which of the following, the nominees are beneficially entitled to the amount payable?
A{'text': 'Parents, spouse or children', 'letter': 'A'}
B{'text': 'Only spouse', 'letter': 'B'}
C{'text': 'Only legal heirs', 'letter': 'C'}
D{'text': 'Only creditors', 'letter': 'D'}
Answer & Solution
Correct answer: A. {'text': 'Parents, spouse or children', 'letter': 'A'}
1. Section 39(7) creates a beneficial-nomination concept.
2. It applies when specific relatives are nominated.
3. Parents, spouse or children (or any of them) are beneficially entitled to the amount payable.
_Source: Insurance Act 1938 (incorporating amendments till 2021), noc.irdai.gov.in — "where the holder of a policy of insurance on his own life nominates his parents, or his spouse, or his children, or his spouse and children, or any of them, the nominee or nominees shall be beneficially entitled to the amount payable"_