It does not.
You pledge your LIC policy as collateral for a bank loan. The bank becomes the “assignee.” Once you repay the loan, the bank must reassign the policy back to you using the LIC Reassignment Form. lic reassignment form
Whenever you repay a loan or settle an assignment, make reassignment a . It does not
For the average policyholder, this form can seem confusing—even intimidating. But understanding it is crucial to protecting your policy’s benefits, ensuring smooth claim settlements, and avoiding legal tangles. ensuring smooth claim settlements