The assignor is the policy owner who transfers all the rights and benefits in the policy to the assignee. This is done through the legal contract of assignment. The assignor is the one who makes the assignment contract.
The assignor is the original party to any assignment contract. Assignor after assignment loses all control of policy. He can neither avail of maturity benefits nor reassign or nominate anyone in the policy.
In a contract of assignment, both parties assignor and the assignee have different roles. The assignor may have his own reasons for the assignment of the policy. The various reasons for assignment can be, out of love and affection, for loan recovery, to repay the loans.
Mr. Sudam assigns the policy of Rs. 3,00,000 to his father Mr.Surendra in event of his retirement. Here Mr. Sudam is the assignor and Mr. Surendra is the assignee. All the rights and ownership of the policy is now in the hands of Mr. Surendra.Back