Assignment

PROCEDURE OF Assignment IN LIC POLICY
The process of transferring the title rights, and interest on assets or property from one person to another person is known as Assignment. Assignment is generally done to provide security against loan.

Assignor :
The person or policy holder who transfers the title on the assets or property is known as the assignor
Assignee :
The person to whom the title on assets or property is transferred is known as the assignee.

Feature of Assignment in LIC Policy
1.     Assignment can be done only after purchase of a policy.
2.     Assignment is applicable to all kinds of insurance plans except pension plans.
3.     Assignor should have complete ownership of the policy.
4.     If life assured is minor, the proposer does not have any rights over the policy, hence cannot assign the policy.
5.     After assignment the assignee gets complete ownership and rights over the policy including death benefit. He can even surrender the policy.
6.     Assignment can be done towards a person or an institution.
7.     Insurer has to record the fact of the assignment in their record.
8.     Assignment once made cannot be cancelled. Policy can be re-assigned in the name of the life assured.
9.     The policy would be re-assigned after repayment of the loan. A fresh nomination should be done after re-assignment of the policy.

Documents Required:
1. Original policy bond (for pasting endorsement).
2. Self attested ID and Address Proof.
3. Notice of Assignment .
4. Assignment form 3855.
5. Re-assignment form 3848.