Policies can be assigned by the policyholder under section 147 of Insurance Act of 1998.

Assignment is valid only when the deed (the memorandum of transfer) is signed by the assignor and the assignee and registered by LICI. Assignment effectively transfers the ownership rights of the policy from the assignor to the assignee. Once assigned, the assignee become the absolute owner of the policy and all the policy proceeds (policy loan, surrender value, survival benefits, maturity value and even the death claim) become payable to the assignee during the term of assignment.

All premium notices shall be sent to the assignee. The policy can be reassigned to the original policyholder by the assignee during the term of the policy. Reassignment is done following the same procedure as an assignment. Procedure for reassignment same as an assignment.

Assignment cancels all previous nominations and hence, it is important that once the policy is re-assigned, a fresh nomination is to be done, to ensure that the policy monies reach the intended legal heirs without legal hassles.

1. Form of Memorandum of Transfer.
2. Original Policy document.
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