L.I.C. Policy

LIC Policies, the surrender value of which, are equal to the future liability of the loan/chitty can be accepted as security. The LIC policy accepted as security in such cases can be in the name of applicant/subscriber or in the name of spouse or in the name of any other person. In such cases the policy should be assigned in favour of the company and the policy holder should be a co-bounden in the agreement.