Report No. 82
1.4. Assignment under section 38, Insurance Act, 1938.-
In the first place, an assignment of the policy is permissible under section 38 of the Insurance Act.1 Under that section, the insured person may, if he so chooses, assign all benefits under the policy. Provided the statutory formalities are observed, such an assignment raises no serious problems. The rights under the policy stand transferred to the assignee or assignees. It is not necessary that the assignee must be the spouse or a child of the insured person, although it is usually so. On maturity, payment of the amount due under the policy is made to the assignee. No other person has a right to participate in the proceeds under a title purporting to be derived from the insured after the assignment.
1. Section 38, Insurance Act, 1938.