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Home / Policy Services / Assignment

Assignment

Several Assignees :

Where the policy is assigned in favour of two or more persons, the assignees will take as tenants-in common or joint tenants according to their interest as expressed in the deed of Assignment.  It must be noted that a tenant in-common has an undivided and specific interest in common with other tenants and on the death of one of the tenants his interest does not pass on to his co-tenants but to his legal heirs.  The joint tenant gets the entire holding jointly with the co-tenant or whose death he takes it absolutely. 

It is doubtful whether an assignment of life policy in favour of several persons specifying shares of each assignee would be regarded as valid or not.  Therefore, the agent must advise their clients not to make an assignment of a policy specifying shares of each assignee as such type of assignment may be held void in the Court of Law.

LIC agents are prohibited from being assignees under the policies on the lives of persons other than own selves or their very near relatives.

An assignment involving  a part of the policy moneys is considered to be void in law.

Mere deposit of policy without any assignment in writing does not create any charge.  So the policy  cannot be mortgaged by just depositing it with another person.  

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