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.
The exact location and date of execution must be specified. Step-by-Step Process to Submit Form 3857
Form 3857 is the official document issued by the Life Insurance Corporation (LIC) of India to execute a reassignment. When you assign a policy to a bank or LIC as collateral, they become the owners of the policy benefits. Once your debt is cleared, the assignee uses Form 3857 to officially return those ownership rights back to you. When Do You Need Form 3857? lic of india reassignment form 3857
This is the core legal text of the form. The assignee explicitly states that they have received all outstanding sums due to them and are releasing the policy from any encumbrances, liens, or charges. 3. Signature of the Assignee
No. LIC of India does not charge any administrative fee or processing charge for registering a reassignment under Section 38 of the Insurance Act. This is the most common use case
The primary form used for to another person (e.g., a creditor, bank, or family member) is:
| Feature | Form 3855 (Assignment) | Form 3857 (Reassignment) | Form 3818 (Nomination) | | :--- | :--- | :--- | :--- | | | Transfer ownership rights to another person. | Transfer rights back to original owner. | Appoint a person to receive claim amount. | | Direction | Policyholder → Assignee. | Assignee → Original Policyholder. | Policyholder → Nominee. | | When to use | Taking a loan, gifting a policy. | After loan repayment, canceling assignment. | At policy start or after life changes. | | Who signs | Assignor (Policyholder). | Assignee (Bank or person). | Policyholder. | The exact location and date of execution must be specified
Thank you.
(The physical document is mandatory, as LIC will endorse the reassignment text on the back of this bond).
Submit the executed Form 3857 along with the to the servicing LIC branch office where your policy records are maintained. Required Checklist of Documents
This process, governed by , is the official method for changing a policy's ownership. It provides a formal, legally binding record of the transfer, protecting the interests of both parties.