In India, legal heirs often face difficulties in accessing the assets of a deceased family member due to lack of documentation, unawareness of investments, or pending legal formalities. Two common and closely connected issues in such cases are the probate of will procedure and unclaimed amounts of policyholders. While probate establishes the legal validity of a will, unclaimed insurance amounts often surface only after the death of the policyholder. Understanding both concepts is essential to ensure a smooth transfer and recovery of financial assets.

This blog provides a detailed explanation of the probate of will procedure and how it helps legal heirs claim unclaimed amounts of policyholders lawfully.

Understanding the Probate of Will Procedure

Probate is a legal process through which a competent court certifies that a will is genuine and valid. The probate of will procedure authorizes the executor named in the will to administer and distribute the deceased person’s estate as per their wishes.

Probate is governed by the Indian Succession Act, 1925, and is often mandatory when dealing with immovable property, high-value assets, or claims raised by financial institutions.

When Is Probate of Will Required?

The probate of will procedure is required in the following situations:

• When the deceased has left a valid will
• When the will appoints an executor
• When property is situated in jurisdictions where probate is compulsory
• When banks, insurers, or authorities demand legal validation of the will

In many cases, insurance companies also ask for probate before releasing large claim amounts.

Who Can Apply for Probate?

The executor named in the will is the primary person authorized to apply for probate. If the executor is unable or unwilling to act, the court may allow another interested party to apply, subject to legal provisions.

Probate of Will Procedure: Step-by-Step Explanation

1. Filing of Probate Petition: The executor files a probate petition in the appropriate court, submitting the original will and death certificate.

2. Court Fees and Affidavit: Court fees are paid based on the value of the estate. An affidavit affirming the authenticity of the will is submitted.

3. Issuance of Notices: The court issues notices to legal heirs and publishes a public notice in newspapers inviting objections.

4. Verification and Hearing: The court examines the will, witnesses, and supporting documents. If objections arise, hearings are conducted.

5. Grant of Probate: If the court is satisfied, it grants probate, confirming the will’s validity and empowering the executor.

The probate of will procedure can take several months, depending on objections and court workload.

Importance of Probate of Will

The probate of will procedure is important because it:

• Confirms the authenticity of the will
• Protects the executor from future legal disputes
• Enables lawful distribution of assets
• Is often mandatory for property and insurance claims

Without probate, institutions may refuse to release assets.

What Are Unclaimed Amounts of Policyholders?

Unclaimed amounts of policyholders refer to insurance benefits that remain unpaid by insurance companies because the policyholder, nominee, or legal heir has not claimed them. These amounts may include:

• Life insurance maturity proceeds
• Death claim benefits
• Survival benefits
• Premium refunds
• Pension or annuity payments

Such amounts remain with insurers until claimed by the rightful beneficiary.

Why Do Insurance Amounts Remain Unclaimed?

Unclaimed amounts of policyholders arise due to several reasons:

1. Death of the Policyholder: Nominees or legal heirs may be unaware of the insurance policy.

2. Outdated Contact Details: Change in address, phone number, or bank details not updated with the insurer.

3. Missing Nominee Information: Incorrect or disputed nominee records delay settlement.

4. Old or Forgotten Policies: Policies purchased years ago may be forgotten by the policyholder or family.

5. Legal Documentation Issues: Insurers may withhold payment if legal documents are incomplete.

Regulatory Framework for Unclaimed Amounts of Policyholders

The Insurance Regulatory and Development Authority of India (IRDAI) governs the handling of unclaimed insurance amounts. As per IRDAI guidelines:

• Insurers must maintain records of unclaimed amounts
• A searchable database must be made available
• Insurers must make efforts to trace policyholders or nominees
• Periodic disclosures are mandatory

These measures aim to protect policyholder interests.

Link Between Probate of Will Procedure and Insurance Claims

When a policyholder dies and leaves a will, insurers may require probate before releasing unclaimed amounts of policyholders, especially when:

• The claim amount is substantial
• Nominee details are unclear or missing
• There is a dispute among legal heirs
• The will specifies distribution of insurance proceeds

In such cases, the probate of will procedure becomes a crucial step in claiming insurance benefits.

Documents Required to Claim Unclaimed Insurance Amounts

To claim unclaimed amounts of policyholders, the claimant generally needs:

• Policy document or policy number
• Identity and address proof
• Death certificate of the policyholder
• Claim application form
• Nominee or legal heir proof
• Probate of will or succession-related documents (if required)

Documentation requirements vary by insurer.

How Probate Helps in Claiming Unclaimed Amounts

Probate helps claim unclaimed insurance amounts by:

• Establishing legal authority of the executor
• Confirming beneficiary rights under the will
• Reducing disputes among heirs
• Providing indemnity to insurers

Once probate is granted, insurers are more confident in settling claims.

Common Challenges Faced by Legal Heirs

Legal heirs often face challenges such as:

• Lack of awareness of insurance policies
• Missing policy documents
• Disputes among beneficiaries
• Delay in probate proceedings
• Rejection due to incomplete paperwork

Professional legal and financial guidance can help address these issues effectively.

Time Frame and Costs Involved

The time required for the probate of will procedure and insurance claim settlement varies depending on:

• Court jurisdiction and workload
• Value of the estate and insurance amount
• Objections raised during proceedings

Costs include court fees, legal fees, and incidental expenses.

How to Prevent Insurance Amounts from Becoming Unclaimed

Policyholders can take preventive measures such as:

• Updating nominee and contact details regularly
• Informing family members about insurance policies
• Maintaining a list of investments and policies
• Reviewing policies periodically

These steps reduce the likelihood of unclaimed amounts.

Conclusion

The probate of will procedure and unclaimed amounts of policyholders are closely interconnected aspects of estate and financial planning in India. Probate validates the will and empowers the executor, while understanding unclaimed insurance amounts ensures that rightful beneficiaries do not lose access to critical financial benefits.

By being aware of legal procedures, regulatory requirements, and documentation, legal heirs can navigate the process with greater clarity and confidence. Timely action, proper planning, and professional assistance can significantly ease the burden of claiming unclaimed insurance amounts and settling the estate lawfully and efficiently.