The first section of the form requires basic policy identification. In the top box, the assignor must write the full (without any mistakes) and the Sum Assured (the basic cover amount, excluding bonuses). This information must match the original policy bond exactly. Below this, the Name and Address of the Assignor should be written as recorded in LIC’s records. If the name has changed due to marriage, a supporting legal document (like a marriage certificate or gazette notification) is required separately.
In conclusion, filling out LIC Form 3857 is not an intimidating legal puzzle but a methodical data-entry task. By accurately stating the policy number, clearly defining the consideration, precisely naming the assignee, securing two independent witnesses, and submitting the original policy to LIC for endorsement, any policyholder can execute a valid assignment. Rushing or leaving blanks invites rejection; careful, legible completion ensures that the transfer of rights is recognized and enforceable, thereby protecting the interests of both the assignor and the assignee.
The core of the form is the (Clause 1). This states what the assignee is giving in return for the policy rights. In most cases for a loan, the consideration is the loan amount sanctioned by the bank. The assignor must write the exact amount in words and figures (e.g., “Rupees Five Lakhs Only” and “₹5,00,000”). For a gift or a non-commercial transfer, the word “Love and Affection” or “Natural Love and Affection” is written, and the monetary consideration is stated as “Nil.” Do not leave this field blank. how to fill lic reassignment form 3857
The Life Insurance Corporation (LIC) of India’s Form 3857, known as the “Assignment Form,” is a critical document for policyholders who wish to transfer their rights, title, and interest in a life insurance policy to another person or entity. This process, known as assignment, is commonly used when taking a loan against a policy (assigning to a bank) or gifting the policy to a family member. While the form appears legalistic and daunting, filling it out correctly is straightforward if one follows a systematic, clause-by-clause approach. Accuracy is paramount, as errors can lead to rejection or significant delays in claim settlement. This essay provides a clear, step-by-step guide to completing Form 3857 correctly.
Before putting pen to paper, it is essential to understand the two parties involved: the (the original policyholder who is transferring the rights) and the Assignee (the person, bank, or institution receiving the rights). Crucially, the original policy document must be available, as the assignment is endorsed directly on it. Form 3857 itself is the instrument of transfer, and it must be filled in neatly, without any overwriting or corrections. Using black or blue ink is mandatory. The first section of the form requires basic
After the assignor and witnesses have signed, the form must be submitted to the LIC branch that services the policy. Along with the completed Form 3857, the assignor must submit the for endorsement. LIC will then stamp the assignment on the back of the policy bond and return it. Until this endorsement is done, the assignment is not valid against LIC. Finally, it is wise for the assignor to keep a photocopy of the signed and submitted Form 3857 for their records.
Next, the section requires the assignor to declare their intention to assign the policy absolutely. The standard phrasing is printed: “I/We hereby absolutely assign the above policy...” The assignor must then write the Name, Address, and Occupation of the assignee. If the assignee is a bank branch, write the full branch name, address, and its PAN or CIN number. This section must also specify whether the assignment is with or without survivorship . “With survivorship” means if multiple assignees are named and one dies, the policy rights automatically pass to the survivor(s). For a single bank or individual, this clause is typically marked as “Not Applicable.” Below this, the Name and Address of the
Clause 3 deals with . The assignor must acknowledge that after assignment, they have no further rights to the policy benefits (like taking a loan or surrendering the policy) unless the assignment is later revoked. Crucially, the assignor remains liable to pay future premiums if the assignee fails to do so, unless a separate agreement states otherwise. For a bank loan, the bank usually takes over premium payment responsibility; however, the assignor should confirm this with the bank before signing.