‘Conditions and privileges’ of a policy also refer to
assignments and nominations. Assignment
u/s 38 and nomination u/s 39 of The Insurance Act, 1938 are rights of the
policyholder and holder of the policy on his own life respectively. Assignment
deals with transfer of property from assignor to assignee. Assignment may be
absolute or conditional. Assignment shall be informed to the insurer through a
notice of assignment failing which the insurer will not be liable for any
payment made to some one without taking cognizance of the assignment.
Nomination allows the holder of a policy on his own life to nominate a person
or persons to receive the policy money in the event of the death of the life
assured during the term of the policy and to give a valid discharge to the
insurer. After the issue of the policy in case of fresh nomination or change of
nomination notice is to be given to the insurer informing him the fact of
nomination. Notice of assignment or nomination shall be given to the insurer’s
office where the policy is being serviced. In registering an assignment or
nomination the insurer does not accept any responsibility or express any
opinion as to its validity or legal effect.
Key words:
Conditions and privileges of policy
Assignment
Notice of assignment
Nomination
Notice of nomination
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