Car Insurance Nominee: All You Need to Know
20 June,2025
Updated:20 June,2025
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20Every policyholder should take the easy but crucial step of designating a nominee for their Car Insurance Policy. A nominee ensures that the insurance proceeds are transferred to the designated beneficiary in the event of the policyholder's passing without any legal issues.
In India, where financial and emotional stability go hand in hand, being aware of your loved ones' responsibilities as a Car Insurance nominee might help them avoid future issues.
Who Is a Nominee in Car Insurance?
A nominee in Car Insurance is an individual designated by the policyholder to receive the policy benefits in the event of the insured’s demise. This person acts as the custodian of the claim amount and simplifies the insurance payout process.
When purchasing or renewing a Car Insurance Policy, the insurer asks for nominee details—name, relationship with the policyholder, and contact information. Although the nominee is typically a close family member, the insurer does not impose strict conditions on this choice.
Why Should You Appoint a Nominee?
Having a Car Insurance nominee is more than just a formality; it is a safety precaution. Here's why:
- Avoid legal delays: There is no need for drawn-out succession or legal verification processes to transfer the claim amount.
- Financial continuity: The nominee ensures that dependents receive uninterrupted, prompt support.
- Minimises disputes: Family disputes or misunderstandings about who should get the reward are needless when there is a registered nominee.
When the insurer already has nominee information on file, the claim procedure goes much more smoothly and quickly.
Who Can Be Your Nominee?
One of the most often asked questions is: Who is eligible to be a nominee for Car Insurance? The answer is both broad and specific:
| Eligible Nominees | Relationship |
| Spouse | Legally married partner |
| Children | Biological or legally adopted |
| Parents | Either or both parents |
| Siblings | Accepted if immediate family is not available |
| Legal heirs | Recognised as per succession laws |
| Any person of trust | In case no legal heir is desired |
Though insurers favour close family members, policyholders may designate any person they trust. However, as we'll see later, legal heirs have more rights.
How to Add or Change a Nominee in Your Policy?
Updating or assigning a nominee is easy and usually free of charge. Here’s how you can do it:
- Log in to your insurance account (via website or mobile app).
- Navigate to the policy management section.
- Click on 'Update Nominee' or 'Nomination Details'.
- Fill in the nominee’s name, age, relationship, and contact details.
- Upload KYC documents (if required).
- Submit the request and wait for confirmation via email or SMS.
You can also receive offline assistance by visiting the branch or contacting customer care. It is best to keep the nominee information up to date, especially if a current nominee gets married, has a child, or passes away.
What Happens if There Is No Nominee?
The claim process gets legally complex if the policyholder does not choose a nominee:
- The insurance company cannot release the money immediately.
- The court must issue a succession certificate to the legal heirs.
- Depending on the jurisdiction and family structure, the process might take weeks or months.
- Disputes might emerge, delaying financial assistance when it is most needed.
IRDAI strongly advises designating a nominee in Car Insurance to prevent such situations.
Nominee Vs. Legal Heir: What’s The Difference?
Although often confused, a nominee in Car Insurance and a legal heir are not the same.
| Aspect | Nominee | Legal Heir |
| Role | Custodian of the insurance payout | Lawful owner of the deceased’s assets |
| Appointment | Chosen by the policyholder | Determined by succession laws |
| Legal rights | May not have claim over money | Has a rightful claim |
Except in cases when the nominee is also a legal heir, the courts frequently defend the interests of the legal heirs in disputes between them.
Common Mistakes to Avoid When Choosing a Nominee
Steer clear of these typical mistakes when it comes to nominations:
- Not updating the nominee following a divorce or marriage
- Selecting minors without designating a guardian
- Neglecting to notify the nominee of the nomination
- Incorrect or missing nominee information in the policy.
- Considering nomination to be equivalent to ownership
Awareness and accuracy are crucial. Ensure your nominee is aware of their appointment and can locate your policy if needed.
How Does a Nominee Claim the Insurance Payout?
The Car Insurance claim nominee process is simple if the documentation is ready. Here's a typical checklist:
Required Documents:
- Original policy document
- Death certificate of the policyholder
- Identity proof and address of the nominee
- Nominee declaration (as per insurer's format)
- FIR or post-mortem report (if required for accident claims)
- Succession certificate (if no nominee exists)
Process:
- Notify the insurance company of the policyholder's passing.
- Submit documentation online or at your local branch.
- Await claim settlement and verification, which should happen in 7–14 working days on average.
In Summation
A Car Insurance nominee guarantees that your loved ones won't encounter financial or legal obstacles in the wake of life's unforeseen circumstances. You can protect your family's future by spending a few minutes to designate or change your nominee.
At Shriram Car Insurance, we recognise that complete protection includes not only your vehicle but also the welfare of your family. For this reason, we provide each policyholder with devoted assistance, straightforward claim procedures, and nominee services that are easy to update. Explore our Comprehensive and competitively priced Car Insurance plans, which will always protect you and your designated beneficiary.
FAQs
1. Can I nominate a friend as a Car Insurance nominee?
Yes, but to prevent disagreements, it is usually recommended to choose a close relative or legal heir.
2. Can I have more than one nominee?
Certain insurers permit more than one nominee with specified percentages. Consult your insurance provider.
3. How often can I update my nominee?
As often as needed. There are no restrictions, and most insurers allow free updates.
4. Will the nominee get the entire claim amount?
Only if they are also a legal heir, if not, the claim may be contested by legal heirs.
5. Is nominee information mandatory when buying Car Insurance?
It is not legally mandatory, but strongly recommended by IRDAI to avoid claim issues later.
