Lic Of India Reassignment Form 3857 Patched ✧ «UPDATED»

1. Instructions for the policyholder (what to write where).
2. A draft covering letter (if attaching the form to a lender).

1. Repayment of a Loan Against the Policy

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.

A Word of Caution

Don't treat assignment lightly. Once you assign a policy via Form 3857, the Assignee gets the right to:

• Receive the maturity amount.
• Receive the death claim.
• Surrender the policy for cash.
• Change the nominee (unless you restrict this in the form).

If you are the original owner, never sign a blank Form 3857. Fill in the name of the Assignee, the purpose, and the date clearly. lic of india reassignment form 3857

3. Execution of the Deed

The form must be filled out accurately. The authorized officer of the bank must sign the form and affix the bank's seal. This acts as proof that the bank is releasing its claim on the policy.

4. Witness Attestation

The signatures of the bank official usually require attestation by witnesses. This ensures the validity of the document. Instructions for the policyholder (what to write where)

Step 5: Pay the Fee (If Applicable)

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.

Who completes it

• Current assignee (if transferring) and/or policyholder, depending on the transaction.
• If the policy is jointly held or involves minors/incapacitated persons, relevant guardians or legal representatives must sign and submit supporting documents.

1. The Premise: The "Plot Twist" in Your Policy

To understand Form 3857, you have to understand the drama of "Assignment." Receive the maturity amount

• The Setup: When you take a loan against your LIC policy, you assign (transfer) the rights of the policy to the bank or lender. For that period, the bank technically owns your policy. If you pass away, they get the money to recover the loan.
• The Climax: You repay the loan.
• The Problem: The policy doesn't automatically switch back to you. The bank still holds the title.
• The Resolution (Form 3857): This is the "Reassignment" form. It is the legal document that transfers the title of the policy back to you from the lender.

Review: Without this form, you could repay a ₹20 lakh loan, pass away a month later, and your family might struggle to claim the sum assured because the bank is still the official "assignee." Form 3857 is the document that restores your rights. It is the difference between a settled debt and a legal nightmare.

Q3: Is reassignment mandatory after repaying a loan?

Yes. If you do not execute a reassignment, the bank remains the nominee/beneficiary. On maturity or death claim, the bank will receive the money, not you or your family. You must reassign to reclaim your rights.