Close ILTakeCare Suggestion
IL TakeCare app – For all your insurance & wellness needs

Policy purchase, claims, renewal & more


All You Need to Know About Car Insurance Nominee

ICICI Lombard offers car insurance policy that let you add a nominee to your policy. To know more about your car insurance nominee visit us today!

  • 28 Apr 2022
  • 5 min read

What Does Nominee Mean in Car Insurance?

Well-planned insurance coverage for your car includes a well-thought decision regarding a suitable nominee. It ensures a smooth transfer of car ownership in case of the policyholder’s demise. Keeping this in mind, let us understand who a car insurance nominee is and what are his/her rights and duties.

Meaning of Nominee in Car Insurance Policies

While purchasing the car insurance policy, you need to name a nominee along with other essential personal details. A nominee in car insurance serves a similar function as that of any other insurance policy or any other asset an individual holds.

Legally, in the case of an individual’s demise, the assets and any other property owned by him/her is passed on to the legal heir. When naming a nominee, such legality is executed and brought to force, making the named individual the legal heir and effecting policy transfer in the case of the unfortunate demise of the policyholder.

Naming a nominee also eliminates any chances of legal dispute if there are multiple legal heirs to the individual. For instance, if a person has two children, X and Y, both would be the legal heirs to his property. However, if he has named X as the nominee in his car insurance policy, in the case of the policyholder’s demise, any scope for ownership dispute is eliminated.

Now, one must also understand that the policy should be active while such policyholder is deceased for this to effect. The benefits mentioned under the coverage plan would be applicable and claimable by the nominee only if the policy was active during the policyholder’s demise.

Under circumstances where the car insurance nominee hasn’t been mentioned, the ownership of such policy passes on to the legal heir without dispute.

Also read:

Nominee/Legal Heir to Motor Vehicle Policy as per Natural Succession

In case a policyholder has mentioned a nominee to the coverage benefits of an active policy, the ownership is passed to the nominee of the deceased. However, for natural succession, the following relationships qualify to become legal heirs of the car insurance plan in the case of a policyholder’s demise.

1. Spouse

In case the policyholder has a spouse, he/she would be the immediate legal heir to the policy after the former’s demise. The car insurance policy would thus be transferred to the husband or wife under natural succession. If such a name has been specified in the car insurance policy documents as the nominee, the policy transfer is simplified.

2. Child

If a policyholder is a single parent, the ownership of such policy will be transferred to the child after the former’s demise as per natural succession. In case multiple children are involved, such transfer will be based on the policyholder’s legal heir details in the will or other similar processes. If a single child of multiple children is specified as the nominee, such transfer to the mentioned child will be undisputable.

It is best to make sure to name a car insurance nominee while purchasing the motor vehicle policy to eliminate any chances of hassles or disputes among natural heirs. Other parties to be contacted during policy transfer after such demise include the concerned RTO as well as the insurance provider. One can take the assistance of a lawyer for a more streamlined transfer process. It is also suggested for such a nominee to not drive the car if the policy has expired and buy a new coverage in his/her name for hassle-free coverage claims.

  • Looking for tailored advice?

    Schedule a call with our insurance advisors

  • OR
  • Call us:

    1800 2666
Please enter valid name
Please enter a valid mobile number
Please select the Category

Subscribe to our newsletter

Understand insurance better by reading our helpful guides, articles, blogs and other information.

Please enter valid name
Please enter valid Email

Error message here