Lic Of India Reassignment Form 3857 Jun 2026

You cleared a home loan, personal loan, or education loan for which your LIC policy was pledged as collateral.

No. LIC of India does not charge any administrative fee or processing charge for registering a reassignment under Section 38 of the Insurance Act.

Think of it as a legal handover. The assignee hands back the policy to the original owner. Without this form, the assignee remains the beneficiary, which can prevent the original policyholder from taking a loan, surrendering the policy, or receiving the maturity amount. lic of india reassignment form 3857

Rejection rates for reassignment forms are higher than for other LIC forms. Avoid these pitfalls:

If the policy matures or a death claim arises while the policy is still assigned, the money will be paid directly to the bank/assignee. Therefore, ensure you complete the Form 3857 process immediately after clearing your debts. Summary Checklist for Policyholders You cleared a home loan, personal loan, or

: It is primarily used when a policy was previously assigned as collateral for a loan. Once the debt is cleared, the lender uses this form to release their claim.

To understand Form 3857, you have to understand the drama of "Assignment." Think of it as a legal handover

The primary form used for to another person (e.g., a creditor, bank, or family member) is: