REASSIGNMENT

In case you are raising a loan against your policy from any financial institution, your policy would have to be assigned to the financial institution. Assignment means the process of transferring the whole right of policy to other person (for love and affection) or organisation ( for loan)

When an LIC policy is used as a collateral against any Bank loan then, the original nominee in the policy loses all his claims (RIGHTS) to the policy.

The policy would be reassigned to you on the repayment of the loan. A fresh nomination should be done after reassignment of the policy.

 Requirement for reassignment

1. Reassignment form No. 3857 to be signed by authorised person of the organisation with stamp

2. Notice of ressignment

3. Letter of authority on letterhead of the organisation from where you raised loan which is repaid by you

4. Original policy

5. Aadharcard

6. Processing fee Rs. 94.50 + GST ( You have to pay this amount at cash counter of LIC Branch office  where your policy is being serviced . You  can get challan for this from PS dept of LIC branch)

Download Reassignment form No. 3857