Page 37 - IC24 LEGAL ASPECTS OF LIFE ASSURANCE
P. 37
life insurance policy. One such provision is the “Assignment
Clause” under your life insurance policy. It allows the transfer
of the rights of the life insurance policy from the policyholder
to another person or entity.
What is an Assignment of life insurance policy?
Assignment of life insurance policy is the process in which the
policyholder legally transfers the rights of life insurance policy
to another person for various reasons. The process of transfer
is known as an Assignment. Assignment Clause is expressed in
section 38 of the Insurance Act,1938. The policyholder who
assigns the policy (transfers the rights) is known as “Assignor”
and the person to whom the policy is assigned is known as
“Assignee”. After the assignment of the life insurance policy,
the assignor loses his rights over the policy and the assignee
becomes the owner of the policy. You can assign a policy for
taking a loan against your life insurance policy or even if you
