Life Insurance Policy: Inheritance or Exclusive Right of the Nominee?
بیمہ پالیسی کی رقم: ترکہ یا صرف نامزد شخص کا حق؟
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Citation Name : 2025 PLD 40 LAHORE-HIGH-COURT-LAHORE
Side Appellant : Mst. RAZIA BEGUM
Side Opponent : PUBLIC AT LARGE
S. 72---Life Insurance Policy, proceeds of---Tarka---Nominee assigned by the deceased---Scope and effect---Deceased in his lifetime purchased an insurance policy wherein he nominated his wife as his nominee---Mother of the deceased filed an application for issuance of succession certificate, which was concurrently declined---Claim of the petitioner (being mother of the deceased) was that she was entitled to inherit 1/6th share of the insurance policy amount, whereas, respondent (wife/widow) denied her right on the ground that being nominee she was solely entitled to receive the whole insurance policy amount---Deceased left behind mother (petitioner), widow (respondent/ nominee), a daughter and two sons (respondents)---Courts below non-suited the petitioner on the ground that the amount of the Insurance Policy did not fall within the ambit of "Tarka", and was not liable to be inherited by the legal heirs and only the nominee was entitled to receive the amount of said Life Insurance Policy---Legality---Concept of nominee is alien to Muslim Law, according to which the legal heirs are the only persons entitled to receive the property left by their predecessor and no Muslim heir can exclude the other heir on the ground that he is a nominee---A nominee, if appointed, does not become the sole owner of the assets left by the deceased but he/she is only authorized to collect the amount or to hold the property of the deceased as an administrator and then to distribute the same amongst all the legal heirs---The nomination does not make the nominee as donee nor the nomination amounts to a gift, in the absence of delivery of possession of the property gifted---The nominee cannot claim as exclusive owner the amount of the insurance policy---In the light of Muslim Law of inheritance , all the legal heirs of the deceased are entitled to receive the property ("Tarka") left by the deceased, according to their shares---Both the Courts below had erred in law while dismissing the succession petition of the petitioner and had failed to properly appreciate the question involved in the lis as the present case relates to Life Insurance Policy and the nominee was appointed by the nominator just to fulfill the legal requirement of S. 72 of the Insurance Ordinance, 2000---High Court set-aside the impugned judgments of the Courts below, and the petitioner, being mother of the deceased, was held entitled to receive her due share out of the policy proceeds---Revision petition, filed by mother of deceased was allowed accordingly.