Nomination is a right conferred by the section 39 of the Insurance Act 1938, on the âholder of aÂ policy of life assurance on his own lifeâ to appoint a person/s to receive the policy moneys inÂ the event of the policy becoming a claim by the assuredâs death.Â The term âholder of a policyâ ordinarily means a proposer or life assured or an absoluteÂ Assignee who has right, title & interest in the policy. But if the holder of the policy is not lifeÂ assured himself, he cannot effect a valid nomination under the policy. In other words, if holderÂ of the policy is life assured, then only he can effect valid nomination under the policy. In otherÂ cases, where proposer and life assured are different persons i.e. policies taken during minorityÂ of life assured OR policies taken by father on major child, nomination is not allowed. In caseÂ policy is absolutely assigned in favour of assignee, though he is a holder of the policy, AssigneeÂ cannot effect valid nomination under the policy. This is because, he is not life assured underÂ the policy.