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.
The core of the form is the (Clause 1). This states what the assignee is giving in return for the policy rights. In most cases for a loan, the consideration is the loan amount sanctioned by the bank. The assignor must write the exact amount in words and figures (e.g., “Rupees Five Lakhs Only” and “₹5,00,000”). For a gift or a non-commercial transfer, the word “Love and Affection” or “Natural Love and Affection” is written, and the monetary consideration is stated as “Nil.” Do not leave this field blank. how to fill lic reassignment form 3857
Next, the section requires the assignor to declare their intention to assign the policy absolutely. The standard phrasing is printed: “I/We hereby absolutely assign the above policy...” The assignor must then write the Name, Address, and Occupation of the assignee. If the assignee is a bank branch, write the full branch name, address, and its PAN or CIN number. This section must also specify whether the assignment is with or without survivorship . “With survivorship” means if multiple assignees are named and one dies, the policy rights automatically pass to the survivor(s). For a single bank or individual, this clause is typically marked as “Not Applicable.” Clause 3 deals with
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. For a bank loan, the bank usually takes