Assignment FAQs

The person who transfers his right is called the "assignor" (i.e. the Policyholder) and the person to whom the right is transferred is called the "assignee".
You can assign your policy to take a loan against it, as a security or in order to gift it to someone.
You can assign your policy to an individual or a financial institution provided there is an insurable interest between you and such individual/ financial institution.
For assigning your insurance policy you need to make an endorsement (explained below) upon the policy itself or by a separate document.
  1. You (or an individual authorized by You) should sign the endorsement.
  2. It should be attested by at least one witness;
  3. It should mention that you want to assign your policy and the reason for assigning your policy
  4. The details of the assignee; and
  5. The terms on which the assignment is made.

Whenever you assign your policy, you need to send a notice of such assignment to the insurer. An assignment will only be operative against the insurer if the following conditions are satisfied:

  1. A notice in writing of such assignment is received by the insurer.
  2. The endorsement/instrument by which C6endorsement is made or its copy, certified to be correct by both assignor and assignee or their duly authorized agents, have been delivered to the insurer.

You should send the notice to the branch at which your policy is serviced.

We may charge a nominal fee for registering your assignment.
Yes, the Company can refuse to act upon an endorsement. The company will share the reason for refusal with you within thirty days from the date of receiving the notice of assignment.
Yes, when you may assign a policy in favor of the Insurer.

The Insurer may accept your assignment if there is an insurable interest between the assignor and assignee. Generally, following conditions are evaluated for assignment:

  • In the interest of the policy holder
  • Bonafide
  • Not against public interest
  • Not for the purpose of trading
Where there is more than one assignment, the priority of the claims will be decided basis the order in which notice of assignment was delivered to the Company.

The change in rights and liabilities depends upon the type of assignment:

  • Absolute assignment:
    1. Right of Ownership of policy is transferred to assignee
    2. Responsibility to pay future premiums is transferred to assignee
    3. Right of Servicing is transferred to assignee
  • Conditional assignment: Right of ownership, responsibility to pay future premiums and right of Servicing is as per the terms of assignment.

When you assign your policy, it shall automatically cancel the nomination.

Exceptions: the nomination shall not be cancelled when you assign your policy:

  1. To the insurer; or
  2. For taking a loan; or
  3. Against security; or
  4. On reassignment of your policy after repayment.

In these cases, the nomination will get cancelled to the extent of the interest of the insurer or assignee in the policy. The nomination will get revived on repayment of the loan.


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