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Home / Policy Services / Assignment

Assignment

Introduction :

It is natural that a policyholder would desire that in the event of his unfortunate death the payment of the policy monies may not be held up for want of Succession Certificate or Letters of Administration.  Obtaining of Succession Certificate or Letters of Administration would involve both cost and delay.  He can, therefore, get his objective of prompt settlement of claim done in the event of his death either by effecting nomination or assignment of life insurance policy.  These are two specific provisions made in the Insurance Act to enable the policy holder to obtain prompt payment of claim in the event of his death under a life insurance policy on his life. 

Assignment of a life Insurance Policy is governed by Section 38 of the  Insurance Act, 1938. Before we deal with the Salient features of assignments enumerated in the Section 38 of the Insurance Act, 1938, it would be necessary to define the assignment of life insurance policy.  An assignment of a policy may be defined as an instrument whereby the beneficial interest, title and right under a policy is transferred either absolutely or conditionally by one person to another person.  Thus, it is a method by which one living person who is entitled to transferable interest in a policy conveys it to another living person or to himself or to himself and another living person/s.

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