Loan against LIC Policy

POSTED BY Shriram K ON May 13, 2013 3:23 pm COMMENTS (5)

Loan against LIC policy taken 3 years ago.  The banker has taken only a xerox copy of the policy at that time and disbursed the loan.  Does the banker has the rights to claim the money on the policy from LIC at a later date ?

5 replies on this article “Loan against LIC Policy”

  1. Dear Shriram, in that case, It looks that policy was never assigned to bank.



  2. bharat shah says:

    i think , the assignment is done on policy paper itself. so check the policy document with you.

  3. Dear Shriram, please check with LIC. it seems your policy is not at all assigned to the bank.



  4. bharat shah says:

    i think , banker must have taken the letter of assigning the policy to the bank , and must have recorded in LIC. so at time of payment, LIC would give your dues first to LIC and the remaining a/m to you or your nominee.

    1. Shriram K says:

      Thanks Bharat and Ashal. But there was no intimation received from the LIC with respect to any form of assignment to the bank.

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