In simpler terms, when you take a loan (like a home loan or business loan) from a bank, the bank asks for collateral. By using Form 3855, you can “assign” your LIC policy to the bank. This means that if you fail to repay the loan, the bank has the first right to claim the policy’s surrender value or death benefit to recover the outstanding debt.
Searching for the correct form is the first step in a smooth claim process. Often, policyholders rely on agents, but having a direct copy of the empowers you to handle your paperwork independently. lic form 3855 download
If your policy has your maiden name (e.g., “Priya Sharma”) and your bank loan is under your married name (e.g., “Priya Verma”), the assignment will be rejected. Ensure absolute name consistency. In simpler terms, when you take a loan