Assignment FAQs

The person who transfers his right is called the assignor i.e. the policyholder. 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 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 authorised 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
  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 the endorsement is made or its copy, certified to be correct by both assignor and assignee or their duly authorised 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 favour of the Insurer.

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

  • In the interest of the policyholder
  • Bonafide
  • Not against the public interest
  • Not for trading
Where there is more than one assignment, the priority of the claims will be decided based on 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 the policy is transferred to the assignee
    2. Responsibility to pay future premiums is transferred to the assignee
    3. Right of servicing is transferred to the assignee
  • Conditional assignment: Right of ownership, responsibility to pay future premiums and right of servicing is as per the terms of the 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
  2. For taking a loan
  3. Against security
  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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