What is common between nomination and assignment?
A
Both can be done at the time of taking the policy
B
Both are done as per Insurance Act, 1938
C
Both involve transfer of rights under the policy
D
None of the above
Correct Answer: Both are done as per Insurance Act, 1938
Both are done as per Insurance Act, 1938. The appointment of an individual by the assured to receive the amount secured by the policy, upon the demise of the assured is known as a nomination. On the other hand, assignment refers to cede the right, ownership, and interest in the policy to another person.