What do you mean by 'nomination'? Explain the difference between 'nomination' and 'assignment' of an insurance policy.

Nomination is a facility that enables a policy holder to nominate an individual who can claim the proceeds of the policy upon the demise of the policy holder. Nomination is dealt with under Section 39 of the Insurance Act, 1938 which lays down that the policy holder who holds a policy of insurance on his own life, may nominate the person or persons to whom the money secured by the policy shall be paid in the event of death. Where the nominee is a minor, a major should be appointed to receive the money secured by the policy in the event of death of the policy holder during the minority of the nominee. Difference between Nomination and Assignment Sl. No Nomination Assignment 1. Nomination is appointing some person(s) to receive policy benefits only when the policy has a death claim. Assignment is transfer of rights, title and interest of the policy to some person(s). 2. By merely nominating someone, the right, title and interest of the insured over the policy is not transferred straight forwardly to that nominated person and remains with the insured person only. The insurer is bound to pass over the benefits, claims and/or interests to the assigned person(s). Even during the time the insured is alive (or even prior to the death of the insured person). Since the policy benefits are assigned till the time the assignment is revoked once again. 3. Nomination is done at the instance of the Insured. Along with the instance of the insured, consent of insurer is also required. 4. It can be changed or revoked several times. Normally assignment is done once or twice during the policy period. Assignment can be normally revoked after obtaining the "no objection certificate" from the concerned Assignees. 5. No attestation is prescribed in case of nomination. Attestation is required in case of assignment.