Lic Reassignment Form Info

For the average policyholder, this form can seem confusing—even intimidating. But understanding it is crucial to protecting your policy’s benefits, ensuring smooth claim settlements, and avoiding legal tangles.

Without proper reassignment, the bank remains the policy’s rightful claimant—even after you’ve paid off the debt. You will need this form in three common situations: 1. Loan Repayment (Most Common) After repaying a loan against your policy—whether from LIC itself or from a bank/NBFC—the lender must reassign the policy to you. 2. Ownership Correction If you had previously assigned the policy to someone else (e.g., a family member or business partner) and now want ownership back. 3. Discharge of Trust or Legal Obligation If the policy was assigned under a trust or court order, reassignment is required once the obligation is fulfilled. Why Is Reassignment So Important? Here’s where policyholders often make a costly mistake: assuming reassignment happens automatically. lic reassignment form

Whenever you repay a loan or settle an assignment, make reassignment a . For the average policyholder, this form can seem

It does not.