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You assigned your LIC policy to a bank or financial institution as collateral for a home loan, personal loan, or education loan. Now that the loan is fully repaid, the bank must reassign the policy to you.
Life insurance policies are valuable financial assets. Beyond providing life cover, they can be used as collateral for loans or transferred to another person as a gift or sale. In the Life Insurance Corporation of India (LIC), transferring the ownership of a policy is called assignment.
The LIC Reassignment Form No. 3857 is a standardised document used to legally transfer the rights, title, and benefits of a life insurance policy from one person (the assignor ) to another person or entity (the assignee ).
When you take a home loan, business loan, or personal loan, lenders often ask for your LIC policy as collateral. You execute an , making the bank the legal owner of the policy benefits. Once you repay the loan in full, the bank must surrender its rights over the policy. The bank does this by executing a Reassignment using Form 3857. Why and When Do You Need Form 3857? You need this form under specific financial circumstances: lic of india reassignment form 3857
: It legally transfers the ownership, rights, and benefits of the policy back to the original assured.
The is a critical legal document used to restore ownership of a life insurance policy to the original policyholder. Typically, this occurs after a policy was "assigned" as collateral for a loan; once the debt is repaid, Form 3857 is used to "reassign" those rights back to the assured. Understanding Form 3857: Purpose & Scope
: You want to regain the right to change nominees, surrender the policy, or take a loan directly from LIC.
: Ensure any necessary stamp duty has been paid if required for the specific type of assignment. Lic form 3857: Fill out & sign online - DocHub If you're looking to get a fresh start
Are you planning to file for a immediately after this reassignment?
: Transferring rights within a family or as part of inheritance planning. Asset Liquidation
This article provides a detailed overview of the LIC Reassignment Form 3857, its importance, how to fill it out, and the necessary steps for a smooth reassignment process in 2026. What is the LIC Reassignment Form 3857?
The exact date and location where the reassignment is signed. Life insurance policies are valuable financial assets
: Maintain photocopies of the signed Form 3857 and the No Dues Certificate for your personal financial records before submitting originals to LIC.
By properly executing LIC Form 3857, you secure your financial legacy, reinstate your nominees, and ensure that future maturity or survival benefits flow directly into your bank account without legal hurdles. To help tailor this guide further, let me know:
Ensure your policy has not lapsed due to non-payment of premiums during the loan period. All outstanding premiums must be paid up to date.
You previously assigned the policy to a family member or third party and now wish to revert the ownership. Key Components of Form 3857
: The signatures of both parties must be witnessed by a competent person who is not a party to the contract. Filing and Submission Process LIC Policy Guidelines For Policy Holders