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Assignor of a Life Insurance Policy
Assignor of a Life Insurance Policy
Jun 24, 2011 | 14365 VIEWS

Assignment of a Life Insurance Policy simply means transfer of rights from one person to another. 

The person who assigns the policy, i.e. transfers the rights, is called the Assignor and the one to whom the policy has been assigned, i.e. the person to whom the policy rights have been transferred is called the Assignee. 

Assignor Assignee

Thus, the owner of the policy who decides to transfer the rights to someone else, is called Assignor.

Once the rights have been transferred to the Assignee, the rights of the Assignor stands cancelled and the Assignee becomes the owner of the policy. Nomination stands cancelled once the policy has been assigned. Hence the assignor’s legal heirs and nominee have no rights on the policy whatsoever. Then the Assignee becomes the owner of the policy and he may choose to transfer the policy or assign is to someone else!

Let us understand by taking an example:

Akash owns a life insurance policy of Rs 5 lacs which he wishes to assign to Bijay as a gift. Thus, Akash is the Assignor and Bijay is the Assignee. Once the policy is completely assigned to Bijay, he becomes the owner of the policy and Akash has no right on the policy anymore. Even his legal heirs and nominee cannot claim the money once the life insured dies. 

Akash Assignore - Bijay Assignee 

Now, Bikash may choose to re-assign the policy to Chirag. In this case, Bikash is the Assignor and Chirag is the Assignee

Bijay Assignor - Chirag Assignee 

Thus, the owner can assign and re-assign the policy to anyone else also. The person who assigns is called the Assignor and to whom the policy rights are transferred is called the Assignee.

Transfer of rights in 2 Assignment process 

Click to know more about Assignee.

Rupanjali Mitra Basu
Graduate (Economics) and a Post Graduate in Money and Finance with more than 10 years experience in Training with well-known organisations. Currently taking care of the Content Development for Website at MyInsuranceClub

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