Restrictions on assignment
Restrictions on assignment apply to assignors/ assignees /
products.
Assignment being a transfer of property it cannot be done by a
minor life assured. All conditions of ‘capacity to contract’ are relevant in
making an assignment. In case of a juristic person (like a company) a power of
attorney holder or an official holding authority to assign under Articles of Association or through a Board resolution alone can effect an assignment /
reassignment.
Some insurers put conditions on their products that such and such
products cannot be assigned. So read policy conditions to see if there is any such restriction on your policy.
Annuity and pension policies cannot be assigned in India . Unlike in the U.S.
in India we do not have a
law like the one on viatical settlements.
Group policies cannot be assigned. Master policyholder is holding a
policy for the benefit of many persons named in the policy. However during
acquisition or merger of companies group policies in the name of the acquired
company may be transferred to the acquiring company with the consent of the
insurer and as per contract of
mergers / acquisitions.
Restrictions have been put on life insurance agents and officials
and officers of courts becoming assignees of policies if the assignor is not a
relative.
No comments:
Post a Comment