Lucknow, May 6 -- The Lucknow bench of the Allahabad high court has ruled that a beneficial nominee of an insurance policy does not have ownership of the policy's proceeds. The court said holding the beneficiary to be a 'beneficial nominee' -- to the exclusion of the legal heirs -- would lead to absurdity, which was never intended when Section 39(7) of the Insurance Act was amended in 2015. Section 39 (7) provides that a nominee shall beneficially be entitled to the amount payable by the insurer. Prior to the amendment, the nominee of a policy was entitled to hold the amount for the benefit of the successor. Justice Pankaj Bhatia pronounced the judgment recently on a petition filed by one Kusum of Unnao district of UP who was involved in a dispute with her son-in-law and daughter-in-law over the ownership of her daughter Ranjeeta's insurance policies. Kusum had taken 15 life insurance policies in Ranjeeta's name when she was unmarried. Ranjeeta married later and a daughter was born to her. However, Ranjeeta died in 2011 when her daughter was 11 months' old. Since Kusum was a nominee of the insurance policies, she claimed ownership of the proceeds. This was challenged by her son-in-law and granddaughter, who moved the civil court and got a favourable decision. In revision, the Unnao district judge asked Kusum to deposit the amount of these insurance policies in the form of FDR in the name of her granddaughter till she attains age of 18 years....