Thread by @BeshakIN

A man bought two life insurance policies for his brother’ 💰💔

But when tragedy struck, the insurer said - brother cannot claim the money! 😨

Why? Because of ONE MISSING SIGNATURE.

What happened next?

Find out in S01E71 of #ClaimStories  👇

Everyone who buys life insurance has their own unique cause behind it.

Some get it to secure their family's future, others, to protect their families against financial burdens like debts.

But what if this security is taken away just because of one missing signature?  😦

That’s what happened in today’s story…

On one tragic day, Duggabati Raghava Rao’s brother, Duggabati Venkata Krishna Rao, left the world.

Raghava’s whole world was changed.
It took him a whole month before he could start getting back to his life.

And one of the first things he did while settling into his normal life was to submit a claim under Venkata’s life insurance policies.

Venkata had two life insurance policies - one for ₹1 lakh sum assured and another for ₹5 lakh sum assured.

For both of them, he named his brother Raghava as the nominee.

Now after his death, when Raghava filed the claim under the policies with his death certificate and other documents, he expected the insurer to process the claim smoothly.

But that didn’t happen. ❌

The insurer disputed Raghava’s claim.

Reason? Raghava needed to submit a succession certificate.

What’s that now?

 A succession certificate is a certificate given to the successor of a deceased person who has not prepared a will.

The succession certificate gives the certificate holder authority over the deceased person’s debts and securities.

But why did Raghava need this certificate?

Well, there’s a twist in the story…

In his lifetime, Venkata changed his life insurance nominee from his wife to his brother Raghava.

For that, he submitted a nomination change letter to the insurer.

Even the insurer accepted the nomination change letter then.

But now, when they looked at the case again, the insurer found out that the letter lacked Venkata’s signature.

So as per the insurer, now Raghava must have a succession letter to get the claim.

Raghava was confused. 🫤

He presented a copy of the nomination change letter, which was acknowledged by the insurer 5 years before Venkata’s death.

The insurer wasn’t ready to accept that letter.

They argued that since the signature was missing, the claim fell under "open title."

Now what does this “open title” mean?

“Open title” means the rightful recipient was unclear, and a legal certificate was necessary.

Feeling betrayed, Raghava filed a complaint with the District Forum. 🏛️

But nothing much changed.

Unfortunately, the forum ruled against Raghava.

The District Forum stated that although the insurer mistakenly accepted the nomination change letter then, it cannot be deemed valid.

The missing signature of Venkata invalidated the nomination.

But Raghava wasn’t ready to give up yet.

He appealed to the National Commission.

Raghava asked when the insurer accepted the letter then, how can they reject it now?

The National Commission heard both sides, flipped the pages, and found where things went wrong…

👩‍⚖️ The National Commission said that the insurer should not have accepted and acknowledged the nomination change letter without the signature of Venkata at first.

👩‍⚖️ Even if they made that mistake then, they should have highlighted the missing signature before Venkata’s death, which they didn’t.

👩‍⚖️ The commission cited past cases where insurers were held accountable for errors made by their own officers.

Venkata clearly expressed his will to change the nomination to his brother with a written letter.

As per section 39, the nomination change must be submitted in writing and the nominee must be registered with the insurer, which did happen in this case.

👩‍⚖️ The commission cited an old case where the verdict said if the insured doesn’t have debt or security, a succession certificate is not mandatory for the nominee to get the claim.

Since Venkata did not have any of them, a succession letter isn’t needed in this case.

👩‍⚖️ A nominee under an insurance policy is only entitled to collect the proceeds but the amount, however, can be claimed by the heirs of the insured in accordance with the law of succession governing them.

This brought the commission to the final verdict.

The commission ordered the insurer to pay the claim to Raghava.

Additionally, the insurer had to pay ₹5,000 in legal costs and 9% per annum if failed to pay the amount within four weeks from the date of order.

Raghava’s fight for justice finally turned fruitful. 🤍

So what are the Beshak takeaways from this case?

✅ Always ensure your nominee details are properly filled and acknowledged by the insurer.

To make sure that your life insurance policy fulfils the motive you have bought it for, make sure you declare a clear nominee for the claim.

If you mentioning a clear nominee, there’s a chance your family may not receive the claim.

According to the law, anyone that you owe money to will first be paid off before the claim amount reaches your family.

If you’re a married male and are taking the policy with the sole purpose of safeguarding your wife and children’s financial independence, MWP Act can save you here.

At the time of taking the policy, opt for the Married Women’s Property Act. It just requires an extra addendum that you sign, and attach to your proposal form

✅ Don’t hesitate to fight back.

If you feel your claim has been denied wrongfully, then stand up for your rights. Take the case to grievance redressal authorities.

Just like how Raghava stood strong to make sure that the goal his brother bought the insurance policy for was fulfilled.

✅Insurance companies are managed by people, and errors in processing are possible. Staying vigilant with your documents is essential.

From personal details to policy benefits, submitted documents, and any other information - check everything and make sure nothing is incorrectly mentioned and no formality has been overlooked by you or the insurer.

Because even a single missed signature can drag your claim process to the consumer court.

Life insurance is an assurance that even in your absence, your family won’t have to step out of their financial comfort.

But sometimes, even for this assurance, the family has to fight for years.

Seeking expert guidance ensures securing the right policy in the right way, preventing claim rejections.

An experienced advisor can also fight claims on behalf of you when needed.

At @BeshakIN , we have got an army of reliable and unbiased expert advisors.

Find your perfect one today - beshak.org/advisor/?forms…