Adding a nominee to a mutual fund folio or an insurance policy takes about ten minutes. Not adding one can mean months of paperwork for the family left behind.
What happens without a nominee
If an investor passes away without a registered nominee, the folio or policy proceeds cannot simply be transferred to the next of kin on request. The claimant typically has to produce a legal heir certificate or succession certificate — documents that can take months to obtain through local courts — before the AMC or insurer will release the money.
What happens with a nominee registered
With a valid nominee on record, the transmission process is far shorter: typically a death certificate, the nominee's KYC documents, and a simple claim form are enough for amounts up to the threshold set by the AMC or insurer's own transmission policy.
It takes ten minutes, not ten forms
Adding or updating a nominee on an existing folio is usually a single-page form (or an online request through the AMC/RTA portal), requiring the nominee's name, relationship, date of birth, and their PAN or address proof. There is no fee.
Three things worth doing this week
- Check every folio on your latest CAS — not just your newest investment — for a registered nominee
- Check your insurance policies separately; nominee details on an insurance policy are recorded independently of your mutual fund folios
- Update the nominee after any major life event — marriage, the birth of a child, a divorce
If you're unsure whether a folio has a nominee registered, write to us with your folio number and we'll help you check.
