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When a policyholder's nominee dies after the insured person but before the policy money is paid, Section 39(8) provides that the amount is paid to:
A{'text': 'The State Government', 'letter': 'A'}
B{'text': "The insurer's reserve", 'letter': 'B'}
C{'text': 'The Insurance Ombudsman', 'letter': 'C'}
D{'text': 'Heirs or legal representatives of the nominee', 'letter': 'D'}
Answer & Solution
Correct answer: D. {'text': 'Heirs or legal representatives of the nominee', 'letter': 'D'}
1. Section 39(8) covers the sequence where the nominee predeceases payment.
2. It directs the proceeds to the nominee's estate.
3. The amount ... shall be payable to the heirs or legal representatives of the nominee or nominees or the holder of a succession certificate.
_Source: Insurance Act 1938 (incorporating amendments till 2021), noc.irdai.gov.in — "the amount secured by the policy ... shall be payable to the heirs or legal representatives of the nominee or nominees or the holder of a succession certificate, as the case may be"_