In Insurance, the person who is in the receiving end or to the person to whom the policy ownership is transferred is called as the assignee. Normally banks, financial institutions and Individuals will be assigned policies to them for various reasons.
The person to whom the rights of the policy are being transferred by the policyholder (assignor) is called the Assignee.
Assignee in Insurance Detailed Explanation
In Insurance, once the policy is purchased it can be transferred to other person or to any other legal entity at any point of time before maturity. This process of transferring the ownership rights of an insurance policy from one person to another person is called as Assignment of policy. In assignment of policy, the original owner who bought the insurance company is called the Assignor. And the person to whom the policy is assigned is called as Assignee.
- Even a person with unsound mind can be assigned a policy subject to the appointment of an legal guardian
- There is no eligible conditions required to become as an assignee
Rights of An Assignee
- He is the owner of the policy after Assignment.
- He can re assign the policy to some other person
- He surrender the policy in-between if required.
- He can do partial withdrawals from ULIP policies.
- He is entitled to receive the death benefit if any from the policy.
- He is entitled to receive the full maturity benefits of the policy.
- He holds the rights to hold the policy document in his possession.
- Any nominations done before the policy assignment will stand to be ceased or void after assigning the policy to a third person.
- The future premium payment of assignment is the liability of the old policy owner(Assignor).
- Unless and otherwise specified during assignment, the liability of paying premiums is not a liability of the Assignee.
- He is liable to submit the original policy document and required documents to receive death benefit or maturity benefit if any.