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Change of beneficiary for Insurance not allowed when beneficiary deceased?

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asked on May 30, 2017 at 23:23
by   Fairness
edited on Sep 30, 2017 at 06:30
 
The current 2 beneficiaries that been nominees in my mom's insurance policy had passed away. Hence, she wishes to change her insurance beneficiary to others. Request has been submitted to the insurance agent but request was rejected with reason "Change of Beneficiary is not allowed under Section 23 Civil Law Act when beneficiary deceased. Only appointment of new trustee is allowed". In this case, can my mom get herself a will to overwrite the change of the beneficiary? She does not understand why she is the owner of the policy but somehow, she is not allowed to change her wish list. If will is not going to work, what other alternative can she pursue? 
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answered on May 31, 2017 at 23:51
by   vkpc
Request has been submitted to insurance agent but request was rejected with reason "Change of Beneficiary is not allowed under Section 23 Civil Law Act when beneficiary deceased.

Which Insurance Company is this?
Possibly the insurance agent gave you wrong information.
Try deal direct with insurance company to change the beneficiary.
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answered on Jun 1, 2017 at 00:24
by   Fairness
edited Sep 30, 2017 at 06:33
 
It's AIA insurance. Sound so funny but this does happen where policy holder still alive but not able to change their wish list nominees, only trustee can be changed as per the law. We had submitted all relevant documents to KL HQ, this is what they had responded. Hence we are looking for others alternative like getting a will. But we not sure if this going to work! 
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answered on Jun 1, 2017 at 02:21
by   vkpc
"Change of Beneficiary is not allowed under Section 23 Civil Law Act when beneficiary deceased. We had submitted all relevant documents to KL HQ,  this is what they had responded.

Post AIA reply letter here for verification and checking.
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answered on Sep 8, 2017 at 05:44
by   jeff005
edited Sep 30, 2017 at 06:36
 
@ Fairness

If you are still on this thread, here is what I got from an Insurance guy.

There were amendments in Insurance Laws some time ago.
There are 2 types
1. Nominee(s)
2. Beneficiary

Nominees can be changed just by updating, just like as in EPF. Nowadays, EPF informs accounts holders to make fresh nominations (not beneficiaries). 

Beneficiary is by assignment and cannot be changed.
Nominations can be changed just by updating.
All Insurance policies nowadays uses nomination forms.

So, while making a WILL, do be careful of choosing the term "Nominee" and "Beneficiary". One may outlive the beneficiary due to various reasons.

Hence we are looking for others alternative like getting a will
Back to square one.
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