Friday, November 8, 2013

Assignment of a life insurance policy – 5


Sec.38 (2) of the Insurance Act, 1938 speaks about giving a notice of assignment to the insurance company. But the section is silent about who shall give a notice to the insurer.  Have you noticed this? Whether notice shall be given by the assignor, assignee, or both or their legal representative?

The answer to this is given in sec.132 of the Transfer of Property Act, 1882, which is reproduced here: ‘Notice to be in writing, signed: Every notice of transfer of an actionable claim shall be in writing, signed by the transferor or his agent duly authorized in this behalf, or, in case the transferor refuses to sign, by the transferee or his agent, and shall state the name and address of the transferee.

Therefore notice of assignment may be signed by the assignor, assignee or by a person authorized for the purpose by either of them. In every notice of assignment name and address of the assignee must be given.

Key words

Assignment
Assignor
Assignee
Notice of assignment

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