Postal life insurance is taken by the policyholder to guard their loved one in case of any unfortunate happens in his/her life and nominate someone to receive the death claim amount.

However, in some cases where the nominated person died before the policyholder and a death claim arose in the policy due to the death of the PLI policyholder, such cases required legal documents to claim the death amount. So here we will check in detail whether a succession certificate is mandatory in a PLI death claim or not, and what are formalities to waive the succession certificate in a PLI death claim.

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When the succession certificate is required in the Postal Life Insurance (PLI) Policy death claim

• Maturity during the insured person’s lifetime: If the Postal Life Insurance (PLI) policy matures and maturity benefits payout while the insured person is still alive, the money goes to the policyholder. The question is raised only when there is no nomination in the policy or all nominees predeceased the insurant.
• All nominees and PLI policyholder predecease maturity: If all the listed nominees in the PLI policy and policyholder die before the policy matures, the payout goes to the heirs or legal representatives of the holder of a succession certificate as the case may be.
• In the absence of the eligible claimant, legal representatives of the PLI policyholder are required to submit a succession certificate from the court to receive the PLI death claim amount.
• However, sometimes obtaining a succession certificate from the court is a time-consuming and costly process.

Is a succession certificate mandatory PLI death claim?

No, in a death claim for an amount up to Rs.30,00,00 ( three lahks only) where nomination exists or nominee pre-deceased insurant, the requirement of production of succession certificate may be waived by the competent authority in the Postal life insurance i.e head of Circle on a valid grounds.

This claim limit applies to all policies held by the deceased policyholder, for example, if there is the sum assured and the bonus amount in one or two policies is more than Rs. 300,000, a succession certificate is mandatory in such cases.

However, such a claim will be entertained by the PLI only after three months of the death of the policyholder and an affidavit in nonjudicial stamp paper of Rs.50/- will be submitted in this regard by the claimant.

Why a succession certificate might be necessary:

1. No Nominee Designated: If the deceased policyholder did not nominate anyone to receive the PLI death claim amount or all nominated nominees died before maturity, a succession certificate may be required to decide the legal heirs entitled to claim the benefits.
2. Disputed Claims: In situations where multiple claimants are submitting their right to the insurance proceeds, a succession certificate may be needed to establish the rightful beneficiary according to the law.
3. Legal Process: Sometimes, Postal life insurance requires a succession certificate as part of their standard procedure to ensure that the benefits are disbursed to the appropriate legal heirs in compliance with legal regulations.
4. Court Order: In cases where the PLI is unsure about the rightful claimant or if there’s a dispute among actual beneficiaries, a court may issue directions mandating the issuance of a succession certificate to resolve the matter.
5. Policy Terms and Conditions: Some insurance policies may explicitly state that a succession certificate is necessary for claims processing in the absence of a nominee to avoid legal complications.

Obtaining a Succession Certificate in India involves several steps and requires certain documents.

Succession Certificate Process:

1. Your area Court: The petition for the Succession Certificate will be submitted in the district court where the deceased person resided at the time of death.
2. Submit Petition: Prepare and submit a petition to the concerned district court. This petition should outline your claim and request for the certificate.
3. Follow the Court Procedure: The court will conduct a preliminary hearing after the petition is submitted by the claimant.
4. Hearing and succession Certificate: All concerned parties will be heard during the hearing by the court. Being satisfied with your claim, the Succession Certificate will be granted.
5. Bond Submission: In some cases, the court might require you to submit a security bond before issuing such a succession certificate.

Documents Required for Succession certificte:

• Death Certificate: A certified copy of the deceased’s death certificate.
• Legal Heir Details: Proof establishing your identity and relationship to the deceased as a legal heir. This could include documents like a PAN card and address proof.
• Application Form: The prescribed application form for a Succession Certificate with the required court fee stamp affixed.
• Other Documents like :
  • Details of all legal heirs (names and addresses).
  • In the case of moveable assets (like bank deposits), original bank documents might be needed.
  • No-Objection Certificate (NOC) from other legal heirs if they relinquish their share.

Affidavit in case wavier of success certificate in PLI Download here

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