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Home / Policy Services / Assignment

Assignment

Death of Assignee:

In the case of conditional assignment, if death of the conditional assignee is established, the benefit under the policy reverts to the life assured.  On the other hand, if the assignment is absolute, the interest in the policy on the death of the assignee would vest in the estate of the assignee and person who obtains evidence of title to the estate of assignee would be entitled to the policy moneys.

As assignment of a policy made in accordance with the Section 38 of the Insurance Act automatically cancels the Nomination under a policy subject to the provision where a loan is granted by the insurer on the security of the policy, the assignment in favour of the insurer  does not cancel the Nomination but affects the right of the Nominee, only to the extent of the insurer’s interest in the policy.

The valid assignment once made cannot be cancelled by the assignor though the Notice of Assignment had not been served on the Corporation for the reason that by executing the assignment the assignor has created a vested interest in favour of the assignee and he has denied himself the interest under the policy from the date of the assignment.  Hence to cancel the assignment there must be a valid reassignment made on the policy or by a separate deed by the assignee who must be major and competent to contract.  

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