Frequently Faced Challenges

Documents Needed:

• Forms:

Form T1  if the deceased was the first holder or
Form T2 if the deceased was second or third holder

• Photocopy of Death Certificate of the deceased unit holders duly attested by a Notary public or a gazetted officer
• Copy of Birth Certificate (only if any of the surviving holder is a minor)
• KYC documents (if not compliant yet) of the surviving holders/or of the Guardian (if holder/s is minor)
• Cancelled cheque leaf with pre-printed name of all surviving holders (or now first named holder) and bank account number pre-printed
  Or

• Photocopy of bank statement / passbook of account of all surviving holders (or now first named holder) with entries not older than 3 months; attested by a Notary Public or Gazetted Officer or Bank Manager

Points to remember:

• Submit separate forms for each fund house listing all folios in that fund house
• Submit separate forms for each combination of holders
• In case of death of the 1st holder, the surviving 2nd holder will be treated as the new 1st holder.

Submit these forms to:

Use this link to locate a Mutual fund branch office
Use this link to locate a mutual fund service centre

Effect of transfer of the asset:

• Units are transferred to the name of the surviving joint holder(s) in the same order as before
• The surviving joint holder(s) can encash the units at any time after transfer
• The surviving holder(s) remain liable to the legal heirs of the deceased holder determined in accordance with the law

More details : available on this link from AMFI

Last updated on 21 August, 2021

Legal Disclaimer – Click here

Documents Needed:

• Forms: Form T 3
•  Photo copy of Death certificate of the deceased unit holders duly attested by a Notary public or a gazetted officer
• Copy of Birth certificate (only if any of the nominee(s) is a minor)
• Copy of PAN card of nominee(s) /or Guardian if any of the nominee(s) is a minor
• KYC documents (if not yet compliant) of the nominee(s) /or of the Guardian if any of the nominee(s) is a minor.
• Cancelled cheque leaf with name (of all nominee(s) or at least now first named holder) and bank account number pre-printed. OR
• Bank statement/photocopy of bank passbook of account of all nominee(s) or at least now first named holder) with current entries (not older than 3 months) attested by a Notary public or gazetted officer or Bank manager

Points to remember:

If the value of the units is up to ₹2 Lakh,

• Nominee (s) signature attested by the Bank Manager as per Annexure-Ia.
• In case any of the Nominee is a Minor, signature of the Guardian (as per the bank account of the Minor or the joint account of the Minor with the Guardian) shall be attested

If the value of the units is for more than ₹2 Lakh,

• Nominee(s)’s signature shall be attested by a Notary Public or a Judicial Magistrate First Class (JMFC) in TRF 3 itself.
• Submit separate forms for each mutual fund house listing all folios in that fund house

Submit these forms to:

Use this link to locate a Mutual fund branch office
Use this link to locate a mutual fund service centre

Effect of transfer of the asset:

• The nominee (s) can encash the units at any time after transfer
• The nominee (s) remain liable to the legal heirs of the deceased holder determined in accordance with the law

Detailed requirements available on this link from AMFI

Last updated on 21 August, 2021

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Forms needed : Form T 3

• Photo copy of Death certificate of the deceased unit holders duly attested by a Notary public or a gazetted officer
• Copy of Birth certificate (only if any of the claimant(s) is a minor)
• Copy of PAN card of claimant(s) /or Guardian (if any of the claimant(s) is a minor)
• KYC documents (if not yet compliant) of the claimant(s) /or of the Guardian (if any of the claimant(s) is a minor)
• Cancelled cheque leaf with name (of all claimant(s) or at least now first named holder) and bank account number pre-printed OR
• Indemnity Bond duly signed,  executed by all legal heir/s and notarized (Annexure II) – duly notarised .Bank statement/photocopy of bank passbook of account of all claimant(s) or at least now first named holder) with current entries (not older than 3 months) attested by a Notary public or gazetted officer or Bank manager.
• Notarised Individual Affidavit by all legal heir/s (Annexure III ) – duly Notarised

Points to remember

If the value of the units is upto ₹2 Lakh

• Document evidencing relationship of the claimant/s with the deceased unitholder/s and NOC from other Legal Heirs ( Annexure – IV)

If the value of the units is for more than ₹2 Lakh

• Notarised copy of the Probated Will OR 
• Notarised copy or Legal Heir certificate or Succession certificate issued by a competent court OR 
• Notarised copy Letter of Administration, in case deceased had died without leaving a will
• Getting these documents is tedious, expensive & time consuming. Hence make sure nominations are always in place even if will is written
• Submit separate forms for each mutual fund house listing all folios in that fund house.

Submit these forms to:

Use this link to locate a Mutual fund branch office
Use this link to locate a mutual fund service centre

Effect of transfer of the asset :

• The transferee(s) can encash the units at any time after transfer
• The transferee(s) who are not legal heirs remain liable to account to the legal heirs of the deceased holder determined in accordance with the law.

Detailed requirements available on this link from AMFI

Last updated on 21 August, 2021

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• Broad guidelines for hassle free, expeditious settlement of claims on the death of a depositor provided by RBI. See clause 6 of this RBI master circular
• Individual banks decide their own rules within these broad guidelines
• Rules for each bank can be found on individual bank’s website

For details of specific banks rules for transfer of bank accounts and lockers please click on this link.

Last updated on 14 September, 2021

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General RBI guidelines applicable where  survivor clause is mentioned as: “Either or Survivor”/ “Former or Survivor”/ “Latter or Survivor” / “Anyone or Survivor”.

Documents Needed:

1. Death certificate of the account holder
2. Identity documents of the surviving joint account holder
3. Appropriate documentation to make clear to the Survivor that he holds the money in trust for the legal heirs of the deceased account holder
4. Bank cannot insist on Legal Representation (Succession Certificate / Wills and Probate / Letter of Administration / Order of Administrative General attached to High Court) irrespective of amount in the account.

Formalities:

Survivors to make an application along with a photocopy of the Death Certificate for bank record.    

Relevant Information:

Current Account/ Savings Bank Account:

• Survivors are advised to transfer the balance to a fresh account in their own name.
• Survivors can also close the accounts if they want to.

Pipeline Flows:

• At the option of the survivor, Pipeline flows in the name of the deceased can be credited to a separate account titled “Estate of ________ “(withdrawals are not permitted from this account only final transmission)
  OR
• The pipeline flows could be sent back to remitter enabling the survivor to directly collect the same from the remitter

Fixed Deposits:

• In case of fixed deposits premature closure on death has to be allowed without any premature withdrawal penalty. Other terms and conditions need to be specified in the account opening form itself.
• For time deposits, the survivors can continue with the account by deleting the deceased depositor’s name from the TDR/STDR / Other FDs.
• Time deposits can be split in the name of surviving depositors which can run on like the original deposit.

Banks are required to settle claims within 15 days of receipt of the claim

Specific rules of Individual banks within the above broad guidelines are available on this link

Last updated on 21 August, 2021

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Broad RBI guidelines  available from paragraph 6 of RBI master Circular available on this link

Banks are advised to give wide publicity and provide guidance to deposit account holders on the benefits of the nomination facility and the survivorship clause. Illustratively, it should be highlighted in the publicity material that in the event of the death of one of the joint account holders, the right to the deposit proceeds does not automatically devolve on the surviving joint deposit account holder, unless there is a survivorship clause.

When a joint account holder dies, in the absence of a clause like Either or Survivor, First or Survivor , Last or Survivor, the balance can be paid jointly to the survivors and the legal heirs of the deceased.
Example: If an account in the joint name of A and B, and if A dies, the balance will not be paid to B alone. It has to be paid to B and to the legal heirs of A jointly. The settlement can be made to the legal heirs of A either through legal representation or without legal representation as the case may be.

Rules of specific banks are available on this link

Last updated on 21 August, 2021

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RBI guidelines available from paragraph 6 of RBI master Circular available on this link

Specific rules of SBI are given below : Documents Needed:

1. Death certificate of the account holder (s).
2. Identity documents of the nominee(s).
3. Appropriate documentation to make clear to the nominee(s) that he holds the money in trust for the legal heirs of the deceased account holder.
4. The bank cannot insist on Legal Representation (Succession Certificate / Wills and Probate / Letter of Administration/Order of Administrative General attached to High Court) in such cases irrespective of amount in the account.

Formalities:

• The registered nominee can apply to the bank, giving full details of the accounts of the deceased depositor.
• If the nominee is minor, the guardian appointed by the deceased account holder to act on behalf of the minor until he/she attains majority must apply to the bank, giving full details of the accounts of the deceased depositor.

Signatures of two witnesses of good standing and integrity who are acceptable to the Bank should also be provided on the application. The witness can be any of the following:

1. 1. Magistrate or Judicial official
   2. Any Officer of the Central / State Government or Any Officer of the Bank.
   3. Any two persons acceptable to the Bank.

• On receipt of the claim from the nominee, the branch will verify the photocopy with the original Death Certificate, Nomination number as registered in CBS, Nomination register.
• Banks are required to settle claims within 15 days of receipt of the claim.

Fixed /Term Deposits

• In case of term deposits, on request from the nominees, the deposit can be split in the name of nominees and original interest will continue
• Premature closure on death must be allowed without any premature withdrawal penalty. Other terms and conditions need to be specified in the account opening form itself.

For rules of other banks please click on this link.

Last updated on 21 August, 2021

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Broad Guidelines available from paragraph 6 of RBI master Circular available on this link

In such an account where there is neither Survivorship clause nor Nomination, the Bank delivers the assets only to the legal heirs.

In order to avoid inconvenience and undue hardship to the common person in obtaining legal representation ((Succession Certificate, Wills and Probate, Letter of Administration, order of Administrative General attached to High Court), they can adopt a simplified procedure.

Simplified Procedure:

Bank can adopt a simplified procedure if:

1. the customer has died INTESTATE
2. there are no disputes among the legal heirs
3. Those legal heirs who do not wish to inherit the amount furnish a Letter of Disclaimer to this effect
4. Other legal heirs join in indemnifying the Bank
5. there is no reasonable doubt about the genuineness of the claimant(s) being the only legal heir
6. there is no court order restraining the bank from making the payment from the account of the deceased
7. the banks may fix a minimum threshold limit, for the balance in the account of the deceased depositors, up to which claims in respect of the deceased depositors could be settled without insisting on production of any documentation other than a letter of indemnity.

SBI rules on this issue given below :

Documents Needed:

1. Photocopy of Death Certificate (original shall be verified by the bank).
2. KYC details of all the legal heir(s)
3. Account details of the Claimant(s) (If available)
4. Letter of disclaimer from legal heirs who do not wish to inherit
5. Revised Claim Form duly filled and signed by the Claimant(s), other than those who signed the letter of disclaimer.
6. The Declaration in the Revised Claim Form regarding the Legal Heirs(s) of the deceased is to be signed by-
   1. • One independent person well known to the family of the deceased but unconnected with it and acceptable to the Bank OR
      • By any account holder of the Bank known to the family of the deceased but unconnected with-it OR
      • By any Govt. Official whose signature is verifiable by the Bank. AND
      • Such Declaration has to be sworn as an Affidavit before the Judicial Magistrate or Notary Public as per COS-539, when the settled amount is more than Rs 5.00 lakhs. AND
      • Stamped Letter of Indemnity from the Claimant(s) plus one Surety good for the amount or two Sureties jointly good for the amount.
   2. Any legal heir(s) who has signed the Letter of Disclaimer in favor of other legal heir(s) may stand as surety if he/she is independently good for the amount of claim.
   3. Production of Surety will not be insisted upon when the settled amount is not more than Rs 5.00 lakhs.

“

For rules of other banks please click on this link.

Last updated on 21 August, 2021

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RBI Guidelines: Banks should treat Safe deposit lockers in much the same way as they do bank accounts.

1. In case of death of a sole locker-hirer (With Nomination):Access to locker may be given to the nominee. Only following documents are needed:

• • Death certificate and
  • Identification of nominee

2. In case of joint locker hirer and death of one of the hirers (With Nomination), with contract of joint operation: Access to the locker may be given to the nominee jointly with the surviving hirer(s). In such cases only following document are needed:

• • Death certificate and
  • Identification of nominee,

3. Where both / all the joint locker hirer(s) die and where there is nomination, Access to the locker may be given to the nominee(s). Only following documents are needed:

• • Death certificate and
  • Identification of nominee(s)

4. Where there are joint locker-hirers having a contract of hire with survivorship clause such as ‘either or survivor’, ‘anyone or survivor’ etc.,The locker is not to be operated jointly, access to the locker may be given only to the survivor in case of death of one of the hirers.
5. In all the above cases, while granting access to the safe deposit locker or while permitting the removal of the contents of any locker by any nominee or jointly by any nominee and survivors or by legal heir(s) an inventory of the article / contents of the locker may be prepared and signed by the new locker-hirer(s)/depositor of safe custody article to whom access is to be given,
6. Nomenclature of the account may be changed in the name of the new hirer(s)/depositor, and fresh nomination may be obtained from them
7. Banks are not required to open sealed/closed packets left with them for safe custody or found in locker while releasing them to the nominee(s) and surviving locker hirers / depositor of safe custody article.

More Details available in this RBI circular : https://rbi.org.in/Scripts/bs_viewcontent.aspx?Id=454

Rules of SBI given below:

Formalities:

Bank generally follows the above RBI guidelines in case a survivor or nominee exists. However, the Bank normally takes the following precautions before handling over the contents.

• Bank exercises due care and caution in establishing the identity of the survivor(s)/ nominee(s) and the fact of death of the locker hirer by obtaining appropriate documentary evidence.
• Bank normally makes diligent effort to find out if there is any order from a competent court restraining the branch from giving access to the locker of the deceased; and
• Bank normally makes it clear to the survivor(s)/ nominee(s) that access to locker is given to them only as a trustee of the legal heirs of the deceased locker hirer i.e. such access given to him/ her shall not affect the right or claim which any person may have against the survivor(s)/ nominee(s) to whom the access is given.
• While giving access to the survivor(s)/nominee(s) of the deceased locker hirer, Bank does not insist on production of succession certificate, letter of administration or probate, etc., or obtain any bond of indemnity or surety from the survivor(s)/nominees(s).
• Bank normally prepares an inventory before permitting removal of the contents of a   Safe Deposit Locker. The inventory shall be prepared in the presence of two officers of the branch and two independent witnesses in the appropriate forms as circumstances require (Specimen copy of the form is available on the website)

Bank is not required to open sealed/closed packets found in the locker while releasing those to the nominee and surviving locker hirer.

• In case the nominee(s)/ survivor(s)/ legal heir(s) wishes to continue with the locker, Bank may enter a fresh contract with nominee(s)/ survivor(s)/ legal heir(s) and also adhere to KYC norms in respect of the nominee(s) / legal heir(s).

In order to facilitate the identification of Safe Deposit Lockers on the basis of locker keys, Bank normally arrange to emboss on all locker keys, an identification code which could indicate the bank and the branch providing the locker.

For specific rules of banks please click on this link.

Last updated on 21 August, 2021

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i) In case of death of a sole locker-hirer (With No Nomination)

• Where there is valid Will: Access may be given to executor / administrator representative of the deceased.
• If there is no Will: access may be given to the legal representative of the deceased.

Documents needed:

1. Death certificate
2. Proof of legal representation (Succession Certificate, Wills and Probate, Letter of Administration, order of Administrative General attached to High Court)

ii) In case of joint locker hirer and death of one of the hirers (With No Nomination), with contract of joint operation:

If one of the hirers die, access to the locker may be given to the survivor jointly with the legal heirs (or the executor / administrator, if appointed) of the deceased hirer.

Documents needed:

1. Death certificate
2. Proof of legal representation (Succession Certificate, Wills and Probate, Letter of Administration, order of Administrative General attached to High Court)

iii) Where all of the Joint locker-hirers having a contract of hire with survivorship clause (such as ‘either or survivor’, ‘anyone or survivor’ etc.) die and where there is no nomination:

Access to the locker may be given jointly to the legal heirs of all the deceased hirers (or the executor / administrator if appointed).

Documents needed:

• Death certificate
• Proof of legal representation (Succession Certificate, Wills and Probate, Letter of Administration, order of Administrative General attached to High Court)

iv) In all the above cases, while granting access to the safe deposit locker or while permitting the removal of the contents of any locker by legal heir(s) an inventory of the article / contents of the locker may be prepared and signed by the new locker-hirer(s)/depositor of safe custody article to whom access is to be given,

v) Nomenclature of the account may be changed in the name of the new hirer(s)/depositor, and fresh nomination may be obtained from them

vi) Banks are not required to open sealed/closed packets left with them for safe custody or found in locker while releasing them to the legal heir(s)

For specific rules of  banks please click on this link.

Last updated on 21 August, 2021

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Documents needed for Transmission:

• Surviving holders to make the request to DP vide transmission form to transmit from deceased account to surviving holder’s account
• Accompanied by Notarised Death Certificate
• After effecting the transmission, the DP will close the account of the deceased.

For more details: See the 2021-0009-Policy-SEBI Circular dated February 05, 2021

https://nsdl.co.in/downloadables/pdf/2021-0009-Policy-SEBI%20Circular%20dated%20February%2005,%202021.pdf
(Transmission of Shares: page 34 to 37 – Clause 1.11)

Source:

https://nsdl.co.in/services/trans.php

Last updated on 21 August, 2021

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Documents needed for Transmission:

Upon the death of the sole client (in case of securities held singly) or the death of all the clients (in case of securities held jointly), nominee must request the DP in writing along with

1. Transmission form
2. A copy of death certificate duly notarised

Transmission of securities where nomination has been made, eliminates the need of cumbersome legal documents such as will, succession certificates etc.

After effecting the transmission, the DP will close the account of the deceased.

For more details: See the 2021-0009-Policy-SEBI Circular dated February 05, 2021

https://nsdl.co.in/downloadables/pdf/2021-0009-Policy-SEBI%20Circular%20dated%20February%2005,%202021.pdf
(Transmission of Shares: page 34 to 37 – Clause 1.11)

Source:

https://nsdl.co.in/services/trans.php

Last updated on 21 August, 2021

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Documents Needed:

In case of death of the sole holder, the legal heir(s) or legal representative(s) must submit to DP  following documents to transfer the securities in the account:

1. Transmission form along with :
2. A copy of death certificate duly notarised
3. A copy of Succession Certificate duly notarised / Order of a court comptetent jurisdiction where the will was left / Copy of the Probate or Lettr of Administration notarised.

However, if the legal heir(s) express inability to produce either  2nd  and 3rd above, and the market value of the securities held does not exceed Rs.1 lakh, then the DP will process the transmission request on the basis of the following documents:

Transmission form along with:

1. Copy of the death certificate duly notarised;
2. Letter of Indemnity duly supported by a guarantee of an independent Surety acceptable to the DP, made on appropriate non judicial stamp paper;
3. An Affidavit made on appropriate non judicial stamp paper; and

No Objection Certificate(s) from all the legal heir(s) who do not object to such transmission.

After effecting the transmission, the DP will close the account of the deceased.

For more details:

2021-0009-Policy-SEBI Circular dated February 05, 2021

https://nsdl.co.in/downloadables/pdf/2021-0009-Policy-SEBI%20Circular%20dated%20February%2005,%202021.pdf
(Transmission of Shares: page 34 to 37 – Clause 1.11)

Last updated on 21 August, 2021

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In case of Death in Account with Single Holding:

• Nominee / legal heir to make an application in Form-3
• Account shall be closed, and deposit refunded along with applicable interest till the date of the death
• Interest from the date of death till the date of final closure of account will at the rate applicable to Post Office Savings Account.

In case of Death in Account with Joint Holding / Nominee

• If the account is in joint name with the spouse, the spouse may continue the account on same terms and conditions.
• If spouse is the sole nominee, the spouse may continue the account on same terms and conditions, provided spouse meets the eligibility criterion on the day of the death of the account holder.
• Where both the spouses have opened separate accounts under this Scheme and either of the spouses dies, then such account standing in the name of the deceased account holder shall be closed.

Source:

 https://rbidocs.rbi.org.in/rdocs/content/pdfs/SCSSGOL17042020.pdf

Last updated on 21 August, 2021

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Nomination (Available except for GPN and bearer bond)

• The sole holder or all the joint holders of such a government security may nominate one or more persons, who in the event of death of the sole holder or the death of all the joint holders, would become entitled to the Government security and payment thereon.
• In such cases where a nomination in respect of a Government security has been made in favour of two or more persons and either or any of the nominees is dead, the surviving nominee or nominees will be entitled to the Government security and payment thereon.

Other Legal Documents for Transmission: 

The title to Government security can now be recognised

• Basis of a Succession Certificate issued under Part X of the Indian Succession Act, 1925
• Basis of a decree, order or direction passed by a competent court
• Basis of a certificate issued, or order passed by any other authority who might have been empowered under any statute to confer on any such person a title to the Government security.
• May also be recognized by the RBI/Agency Banks on the basis of any one of the following six documents as prescribed in the G S Regulations.
  1. “Will” executed by the deceased holder bequeathing in favour of the person claiming title, provided the probate issued in respect of such Will has been submitted by the claimant; or
  2. Registered deed of family settlement
  3. Gift deed executed in accordance with the law
  4. Deed of relinquishment executed by other legal heir or successor of the in favor of the claimant.
  5. Decree passed by a foreign court, execution whereof is permissible in accordance with the provisions of Section 44A of the Civil Procedure Code, 1908 (5 of 1908); or
  6. Deed of partition executed and acted upon, wherein the security has been included and given to the share allotted to the claimant.

Source:

Paragraph 16 onwards – https://m.rbi.org.in/scripts/FAQView.aspx?Id=70

Last updated on 21 August, 2021

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• In the event of the death of the account holder, the account shall be closed and the nominee or the legal heir shall not be allowed to continue the account.
• The balance in the account of the deceased account holder shall earn interest till the end of the month preceding the month in which the eligible balance is paid to the nominee or the legal heir, as the case may be.

Source:

https://www.indiapost.gov.in/VAS/DOP_PDFFiles/Savings%20Bank/Public%20Provident%20Fund%20Scheme%202019%20English.pdf

Last updated on 21 August, 2021

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In case of death of a Joint holder, the surviving holder will be the sole holder, if surviving holder already has single account in his/her name, Joint account must be closed.

Source :

https://www.indiapost.gov.in/VAS/DOP_PDFFiles/Savings%20Bank/Public%20Provident%20Fund%20Scheme%202019%20English.pdf

Last updated on 21 August, 2021

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• Deposit along with interest accrued shall be paid after completion of 5 years to the account holder. Application should be made in Form -3.
• In case of death of account holder before the maturity of the account, the account may be closed and the deposit shall be refunded as per provisions of the General Rules, along with interest up to the month preceding the month in which refund is made.

Source:

https://www.indiapost.gov.in/VAS/DOP_PDFFiles/Savings%20Bank/Monthly%20Income%20Account%20Scheme%202019%20English.pdf

Last updated on 21 August, 2021

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Premature closure of account:

• In the event of death of the account holder, the account shall be closed immediately on application in Form-2 supported by death certificate of the account holder. All money along with the interests due thereon till the date of death shall be paid to the guardian.
• Interest for the period between the date of death of the account holder and date of closure of the account shall be paid at the rate applicable on Post Office Savings Account for the balance held in the account.
• In case of extreme compassionate grounds such as medical support in life-threatening diseases of the account holder / death of the guardian when continuation of the account is causing undue hardship to the account holder, Accounts Office may allow premature closure of the account. Outstanding balance in the account with interest due as applicable to the Scheme shall be paid to the account holder or guardian, as the case may be:
• Provided
  • that no premature closure under this sub-paragraph shall be made before completion of five years from the date of opening of the account.
  • There should be complete documentation establishing the grounds for such closure.
  • Reasons should be recorded in writing.

Source:

https://www.indiapost.gov.in/VAS/DOP_PDFFiles/Savings%20Bank/Sukanya%20Samriddhi%20Account%20Scheme%202019%20English.pdf

Last updated on 21 August, 2021

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On the death of one or two of the account holders in a joint account,

The surviving account holder/s shall be treated as the owner/s of the account.

• they may continue the account or
• close the account and the amount of deposit along with interest will be paid

Death of the single depositor or all depositors of a joint account

If  nomination is in force at the time of death:

• Nominee may make an application in Form-2 to the account’s office along with
  • proof of death of the depositor,
  • and where any other nominee has also died, the proof of death of such nominee.
• If there are two or more surviving nominees, the eligible balance shall be paid in the proportion as specified by the depositor.
• If no such proportion is specified, then distribution will be in equal proportion to all the surviving nominees.
• If any nominee dies, his specified share in the eligible balance shall be distributed among the surviving nominees in the same proportion as their specified shares.
• Where the surviving nominee is a minor, the payment shall be made to a person appointed by the depositor to receive such payment and, if no such person has been appointed, to the guardian of the minor.

 If no nomination is in force at the time of his death

And no legal document (probate of his will/ letters of administration of his estate/succession certificate) is not produced within six months from the death of the depositor then:

e) If the eligible amount does not exceed Rs. 5 lakhs:

Authorised officer of the accounts office may pay the same to the applicant when applied with following documents and upon his satisfaction:

1. Application in Form -2
2. Death Certificate
3. Pass book or deposit receipt/statement of account in original
4. Affidavit
5. Letter of Disclaimer
6. Bond of Indemnity

f) If the eligible amount in the account of the deceased is above Rs. 5 lakh, the amount shall be paid by the accounts office to the claimant on submission of

1. ‘Succession Certificate’ issued by the court
2. Claim form
3. Pass book or deposit receipt or statement of account in original
4. death certificate of the account holder

g) Where there are not more than three surviving nominees or legal heirs, they may, at their option, continue the account and receive the amount of deposit along with interest on maturity in the manner provided for in this Scheme, as if they had opened the account themselves.

h) Where the account is not continued, it shall be closed and the amount of deposit along with interest shall be paid.

Source :

https://www.indiapost.gov.in/VAS/DOP_PDFFiles/Savings%20Bank/National%20Savings%20Certificates%20%28VIIIth%20Issue%29%20Scheme%20%202019%20English.pdf

Last updated on 21 August, 2021

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Transfer of account:

An account may be transferred from one individual to another, subject to eligibility of the transferee. Under following conditions:

1. On the death of the account holder in case of a single account or on the death of all the account holders in a joint account, the amount shall be transferred to the nominees / legal heirs.
2. The account shall be transferred from the account holder to the court or to any other individual as per the orders of the court.
   • on pledging, account shall be transferred in accordance with paragraph 7
   • in the event of the death of any of the account holders in a joint account, the account shall be transferred in the name of the surviving account holder/s.

Payment on the death of account holder

• In the event of death of the depositor of a single account or of all the depositors in a joint account, the deposit shall be payable to the nominee if a nomination exists or to the legal heir(s).
• Where there are not more than three surviving nominees or legal heirs, they may, at their option continue the account and receive the amount of deposit along with interest on maturity in the manner provided for in this scheme, as if they had opened the account themselves.
• Where the account is not continued under sub-paragraph (2), it shall be closed and the amount of deposit along with interest as provided in paragraph 6 shall be repaid.
• On the death of one or two of the account holders in a joint account, the surviving account holder or holders, if any, shall be treated as the owner or owners of the account and such account holder or holders may continue the account under sub-paragraph (2) or close the account under sub-paragraph (3).

Source:

https://www.indiapost.gov.in/VAS/DOP_PDFFiles/Savings%20Bank/Kisan%20Vikas%20Patra%20Scheme%20%202019%20English.pdf

Last updated on 21 August, 2021

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Benefits Available:

1. Pension Benefit
2. Death Benefit: On death of the Pensioner during the policy term, the Purchase Price shall be refunded to the beneficiary.
3. Maturity Benefit
4. Policy Loan

Documents Needed:

For benefit payable on death of the Pensioner:

1. Claim forms, as prescribed by the Corporation,
2. Original policy document,
3. Proof of title,
4. Proof of death, to the satisfaction of the Corporation.
5. proof of age of the Pensioner, if the age is not admitted under the policy.

Remember:

• Intimation of death along with death certificate must be notified in writing to the office of the Corporation within 90 days from the day of death.
• However, delay in intimation of the genuine claim by the claimant, if any, may be condoned by the Corporation, on merit, where delay is proved to be for reasons beyond his/her control.
• Nomination is as per section 39 of Insurance Act, 1938

Source :

https://licindia.in/getattachment/Products/Pension-Plans/Pradhan-Mantri-Vaya-Vandana-Yojana1/Final-Policy-Document_PMVVY-15-06-2020.pdf.aspx

Last updated on 21 August, 2021

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The Process:

1. A claim intimation should be sent to the insurance company at the demise of the life assured.
2. The assignee or nominee under the policy can do this. So can any close relative or the agent who handles the policy.
3. The intimation should contain information like the date, place, and cause of death. The insurance agent has the duty to help the life assured’s family/ assignee to deal with the insurance company to fulfil the formalities for a claim.

Documents Needed:

Each Insurance company has its own process for payment of death claim.

The following details are required by LIC for a death claim :

The insurance company will respond to this intimation and will ask for the following documents:

1. Filled-up claim form (provided by the insurance company)
2. Certificate of death
3. Policy document
4. Deeds of assignments/ re-assignments if any
5. Legal evidence of title if the policy is not assigned or nominated
6. Form of discharge executed and witnessed
7. Other documents such as medical attendant’s certificate, hospital certificate, employer’s certificate, police inquest report, postmortem report etc. could be called for, as applicable.

After receipt of intimation of death of the Life Assured the Branch Office may ask for following: following:requires the following:

1. Claim form A – Claimant’s Statement giving details of the deceased and the claimant.
2. Certified extract from Death Register
3. Documentary proof of age if age is not admitted
4. Original Policy Document

Additional forms required if death occurs within three years of policy date or policy reinstatement date

1. Claim Form B – Medical Attendant’s Certificate to be completed by the Medical Attendant of the deceased during his/her last illness
2. Claim Form B1 – if the life assured received treatment in a hospital
3. Claim form B2 – to be completed by the Medical Attendant who treated the deceased life assured prior to his last illness.
4. Claim Form C – Certificate of Identity and burial or cremation to be completed and signed by a person of known character and responsibility
5. Claim form E – Certificate by Employer if the assured was employed person.
6. Certified copies of the First Information Report, the Postmortem Report and Police Investigation Report if death was due to accident or unnatural cause.

These additional forms are required to satisfy on the genuineness of the claim, i.e., no material information has been withheld by the deceased at the time of proposal.

Difference in status of Nominee under a life Insurance policy versus nominee in other cases

Section 39 (7) of the Life Insurance Act 1938 as amended by Insurance Laws (Amendment Act) 2015 provides as under :

……..Where the holder of a policy of insurance on his own life nominates his parents, or his spouse, or his children, or his spouse and children, or any of them, the nominee or nominees shall be beneficially entitled to the amount payable by the insurer to him or them ……….

If there is no will and the nominee is one of the above relationships to the holder of the policy then the nominee will not be accountable to the legal heirs and will be entitled to the claim amount beneficially.

For example – if the policy holder dies without a will and  is survived by his spouse and 2 adult children. If he had nominated his wife as the nominee than she can utilise the claim amount on her own without being accountable to her 2 adult children.

For more details, visit:

https://www.policyholder.gov.in/How_To_Make_a_Claim_Life.aspx#

Each Insurance company has its own process for payment of death claim. You can get the detailed process by searching for site: Insurancecompanyname death claim process

For example site:licindia.co.in death claim process

Life Insurance Corporation of India – Policy Conditions (licindia.in)

Last updated on 21 August, 2021

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• Payment on death of the subscriber is governed by Para 70 of the above Scheme. Details available on page 77 of the above link. Employees’ Provident Fund Organisation (epfindia.gov.in)
• If nomination exists for part or the full amount then such part or full  amount is payable to the concerned Nominee(s).
• Only family members as defined in Para 2 (g) are allowed to be nominated. Only if a subscriber has no family can he nominate somebody else. But even that nomination becomes invalid when the Subscriber acquires a family later.
• If no nomination exists or it exists only for a part of the amount then for such “unnominated” part or full amount becomes payable to the members of the family as defined above in equal shares with some exceptions (details available as above).
• Claim form : Form 20 available here
• If there is an Unified Account Number (UAN) for the EPF subscriber then there is availability of online filing of claim given on this link

Last updated on 21 August, 2021

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• Details of payment of pension to widow/widower or child(ren) of the subscriber or to both on death of subscriber is covered by Para 16 of the above scheme on page 7 of the link given above.
• Claim Form : Details of the form to be filled for claiming of pension by surviving family members is given on page 7 of this link .
• Claim Form on this link Form No 10D
• Online filing of form : If there is an Unified Account Number (UAN) for the EPF subscriber then there is availability of online filing of claim given on this link

Last updated on 21 August, 2021

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• The nominees are the same as Employee provident fund scheme.
• Claim form : Form 51F available here
• If there is an Unified Account Number (UAN) for the EPF subscriber then there is availability of online filing of claim given on this link
• Details of payment of Insurance amount upto Rs. 7 lakhs to the family members of the deceased subscriber are provided in the above link.

Last updated on 21 August, 2021

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• In the unfortunate event of death of the subscriber, before attaining the age of 60 years, the entire accumulated pension wealth (100%) would be paid to the nominee / legal heir of the subscriber and there would not be any purchase of annuity/monthly pension.
• If death occurs after the annuity has been purchased, then the following amounts may be payable to the nominee: If the option chosen is:
  1. Pension (Annuity) for life with return of purchase price on death of the annuitant (Policyholder) then the principal will be returned to the nominee
  2. Pension (Annuity) for life with a provision of 50% of the annuity payable to spouse during his/her lifetime on death of the annuitant, then 50% of the annuity will be paid to the spouse
  3. Pension (Annuity) for life with a provision of 100% of the annuity payable to spouse during his/her lifetime on death of the annuitant then the annuity will be paid to the spouse
  4. Pension (Annuity) for life with a provision of 100% of the annuity payable to spouse during his/her lifetime on death of the annuitant and with return of purchase price on death of the spouse. If the spouse predeceases the annuitant, payment of annuity will cease after the death of the annuitant and purchase price is paid to the nominee.

Source: https://www.pfrda.org.in/writereaddata/links/faqsallcitizensmodelbf322a1a-be90-4eba-9356-4258f4bdfafd.pdf

Last updated on 21 August, 2021

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The process of transferring immovable property is a complex process and differs from state to state.

Transfer through Nomination:

• Some immoveable properties that are held through Cooperative Housing Societies , commercial premises of cooperative societies or through holding shares in a company offer the facility of nomination.
• Exact process in such case differs from state to state, but if nomination is done, then it is a relatively simpler process to transfer in the society’s records.
• Nominee only holds it as a trustee for legal heirs of the deceased person.
• Nominee cannot sell / gift / or nominate to another person without bringing the legal heir on record.
• It is advisable not to depend on transfer done through the nomination process alone since that is not a final transfer and the nominee holds the asset as a trustee for the legal heirs.

Transfer through Will

• If the person has left behind a will, then that Will has to be certified through a legal court process.
• The legal process determines which asset belongs to which person.
• The legal process can be expensive and time consuming and in some states stamp duty on percentage basis can be quite high.

Transfer through Family Arrangement: (In absence of Will)

• Some states allow all legal heirs to enter “family arrangement” that divides up the assets among “legal heirs”.
• This can be most economical and least time-consuming option.

Transfer through Legal Process

In other cases where the deceased person has not left a Will, the legal heirs will have to follow a legal process for determining how the assets will be divided among themselves. This process can be time consuming and expensive especially if contested. Also in some states the stamp duty on transfers arising from such an order is on a percentage basis without any cap and can be quite high.

• In all cases absolute and final transfer of immovable assets is a complex process and requires the assistance of legal or investment advisory professionals.

Last updated on 21 August, 2021

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This is a complex subject and we are currently working on putting together the content in this regard. Watch this space for further developments.