Form Of Lic — Reassignment

When you take a loan from a bank or LIC against your policy, you "assign" it to the lender. Once the loan is settled, the lender uses a reassignment form to transfer the title back to you.

Depending on the policy’s sum assured, local state laws may require the reassignment to be executed on non-judicial stamp paper of a certain value (e.g., ₹100 or ₹500). Check with your LIC branch.

If you have ever taken a loan against your LIC policy, transferred the policy to a family member, or settled a debt, you have likely encountered the concept of reassignment. This article explains what the reassignment form is, why you need it, and how to file it. reassignment form of lic

The most common scenarios include:

To ensure your request is processed smoothly, you must provide a complete package to your LIC Branch Office : When you take a loan from a bank

For policies gifted or sold (Absolute Assignment), the assignee may use this form to return the policy rights to the original holder for "natural love and affection" or other considerations. Common Form Numbers and Types

Life Insurance Corporation of India (LIC) policies are not just savings or investment tools; they are . Like any other asset (such as property or shares), the ownership rights of an LIC policy can be transferred from one person to another. This process is officially known as Assignment (and later, Reassignment ). Check with your LIC branch

Used when the reassignment involves a financial transaction or repayment. Documents Required for Processing

The act of transferring the rights, title, and interest of a life insurance policy from the policyholder (the assignor) to another person or entity (the assignee). The assignee becomes the new beneficiary of the policy’s proceeds (usually to secure a loan or debt).

: The form must be signed in the presence of a competent witness (often an LIC official or a magistrate if signed in a vernacular language).