The top section of the form requires the identification of the policy in question. The applicant must accurately enter:
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. how to fill lic reassignment form 3857
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. The top section of the form requires the
The form contains a standard legal preamble which states that the Assignor (the bank/lender) is the registered holder of the policy and wishes to reassign it. The applicant must fill in the date of the original assignment and the name of the Assignor (Bank). This establishes the chain of custody and confirms that the entity transferring the policy back is the same one that received it originally. While the form appears legalistic and daunting, filling
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.
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.