Thread by @BeshakIN

💔 What happens if both the insured AND their nominee pass away in the same accident?

Who gets the insurance money then?

IRDAI clarified this rare but critical situation.
Let’s break it down 👇

#InsuranceNews #IRDAI #termInsurance #insuranceupdates

Life insurance usually feels straightforward:
You buy a policy, you're asked to name a nominee, usually a close family member, like a spouse.

The idea? If something happens to you, they get the insurance payout.

Simple, right?
Well… not always. ❌

What if something happens to BOTH you and your nominee?

Who gets the claim then?

This happened on the June 12, 2025, Ahmedabad–London flight tragedy, where many families d!ed together.

In such tragic cases, the question becomes legally and emotionally complex:

👨‍👩‍👧 If the nominee is also not there, who should the insurer pay?

Here’s what the IRDAI says:

👉 In such situations, the insurer will assume the nominee passed away AFTER the insured individual.

That means the claim technically still gets triggered.
✅ So the insurance money can still be claimed.

But, in this case, who gets the money?

👉 The legal heirs of the nominee.

Both the IRDAI rules and the Hindu Succession Act clarify this.

Once the claim is approved, the money is distributed among the nominee’s legal heirs as per the Hindu Succession Act, which divides heirs into two categories:

✅ Class One
✅ Class Two

🧾 Who qualifies as Class One legal heirs?

These are immediate family members:
👉 Wife
👉 Son(s) / Daughter(s)
👉 Mother
👉 If the children are no more, then the grandchildren can claim.

They get the first right to the insurance money.

🧾 If no Class One heir exists, then Class Two legal heirs come in:

These are relatively distant relatives:
👉 Father
👉 Brother / Sister
👉 Nephew / Niece

So why does this rule matter?

Because it prevents insurance money from getting stuck in legal disputes - or being denied entirely just because of simultaneous deaths.

And more importantly, it reminds us of a few things...

To truly protect your family, you also need to:

✔️ Choose your nominee carefully
✔️ Keep those records updated
✔️ Make sure your family knows about your policy.

But even that’s not always enough.

Here’s the part most people miss: Your nominee ISN'T the final owner of the money.

They’re just holding it - until the legal heirs claim it.

That’s why having a WILL matters.

Without a Will, things can get complicated - fast.

📌 The insurer still goes by the policy’s terms, but they’ll then look at the nominee’s legal heirs
📌 Documents proving relationships become crucial
📌 And if heirs aren’t clearly identified, the payout can get delayed or stuck

So here’s what you should actually do:

✅ Keep your nominee details up-to-date
✅ Write a Will - even a simple one helps

✅ And most importantly, talk to your family

Tell them what policies exist, who’s named, and what steps to take if something happens.

Life insurance isn’t just about naming a nominee.

It’s about ensuring the money reaches the right hands, even in the most unpredictable situations.

✅ Don’t just buy insurance. Plan it right.

Beshak’s unbiased experts help you understand nominations, Wills, and payouts, so you avoid future claim disputes.

Connect with them, for free, today 👇
beshak.org/advisor/?forms…

🙏 Found this helpful?

Share it with your family today. Don’t wait till something tragic happens to discuss life insurance.

And for more such simplified, jargon-free insights, follow @BeshakIN 👇

https://twitter.com/1281287883773505536/status/1938216939102605617

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