Submitting Form 3857 is a critical financial transaction. Any mistake can lead to rejection or delays. Follow this step-by-step guide:
This is the most common use case. You took a loan from a bank or financial institution by assigning your LIC policy as collateral. Once you repay the loan in full, the bank (assignee) must execute a reassignment using Form 3857 to return the policy’s rights to you.
Once LIC verifies the documents, they will register the reassignment in their records. An endorsement is made on the policy bond stating: "Reassigned to [Policyholder Name] vide Deed of Reassignment dated [Date]". This restores the policyholder’s absolute rights to the policy. lic of india reassignment form 3857
As per LIC rules, there is no fee for registering a reassignment if the original assignment was registered for consideration (like a loan). However, if the reassignment is voluntary and for no consideration, a nominal fee of ₹50 or as per LIC’s prevailing circular may apply. Always check with your branch.
The executed Form 3857 must be submitted to the servicing branch of LIC (the branch that manages the policy). Along with the form, the policyholder should submit: Submitting Form 3857 is a critical financial transaction
What is LIC Form 3857?
Form 3857 is the Assignment Deed used to transfer the title, benefits, and rights of an LIC policy from the original owner (assignor) to another person or institution (assignee). It is most commonly used when taking a loan against an LIC policy from a bank.
Key points to remember:
Title: Understanding LIC Form 3857: The Essential Guide to Policy Reassignment
Life insurance policies are often taken out to secure the financial future of loved ones or to satisfy loan requirements. When a policy is pledged to a bank or financial institution to secure a loan, it is said to be "assigned" to that institution. Title: Understanding LIC Form 3857: The Essential Guide
Once the loan is repaid, the policy does not automatically revert to the policyholder. A specific legal procedure must be followed to restore the policyholder's full rights. This procedure is known as Reassignment, and the document used to facilitate this in the Life Insurance Corporation of India (LIC) is Form 3857.
This article provides a comprehensive overview of LIC Form 3857, its purpose, and the step-by-step process for completing it.