An assignee is a person to whom all the rights and benefits in the policy are transferred.


The assignment is the legal process by which the assignor assigns the policy to the assignee. The entire ownership of the policy is now with the assignee. He can even reassign the policy in the future. In insurance, the policy once purchased can be assigned to any individual or legal entity at any given point of time before the policy maturity.


Absolute Assignee: Absolute Assignee is the one who can freely take all decisions relating to the policy such as re-assignment, maturity proceeds, or surrender of the policy.

Conditional Assignee: Conditional assignee is the person who is restricted to certain terms and conditions to take any policy decisions.


Example 1: Mr. Paul is gifting his policy to Mr. John of Rs.5 lakh on his birthday through the assignment. Here, Mr. Paul is the assignor, and Mr. John is the assignee. All the rights and benefits of the policy are with Mr. John now.

Example 2: Mrs. Neeta wants to take a loan from XYZ bank. For availing of the loan, the bank wants legal security from Mrs. Neeta until the loan is repaid. Mrs. Neeta has an insurance policy of Rs. 10 lakhs. She assigns the policy in the name of XYZ bank.Here, Mrs.Neeta is the assignor, and XYZ bank is the assignee.