A public interest litigation (PIL) was filed in Lucknow bench of Allahabad High Court, challenging the non availability of nomination facility in the personal accident policy which is sold compulsorily along with motor insurance policy to vehicle owners.
The petitioner said that since facility of nomination is not available on the policy document, the owner of the vehicle remains unaware of the accidental cover and even those who know their beneficiary has to obtain succession certificate from the court to get their claim which is not only expensive but also time consuming.
The Insurance Regulation and Development Authority (IRDA) opposed the petition on the ground that Sec 39 of the Insurance Act mandates nomination facility in only life policies and that there is no reference to personal accident policies.
Petitioner Dhruv Kumar submitted that a personal accident policy, similar to a life policy, also insures against the death of policyholders and hence, it too requires nomination facility.

The bench comprising of Chief Justice FI Rebello and Justice DK Arora did not appreciate that IRDA was not providing the nomination facility in motor policies and directed the IRDA to enforce the mandated regulation on insurance companies.

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