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PUNJAB NATIONAL BANK

INTEGRATED RISK MANAGEMENT DIVISION L&A


(CREDIT POLICY SECTION) Cir. No.122/2014
HO : 7, Bhikhaiji Cama Place, New Delhi-110607.

CPY-24
Oct 20, 2014
TO ALL OFFICES

LOANS & ADVANCES CIRCULAR NO.122

ADVANCES AGAINST LIFE INSURANCE POLICIES

Attention of the Incumbents are invited to Item no.6 of Annexure I of L&A Cir.No.
112 dated 24.10.2013, interalia, advising that policies are to be sent directly to the
Insurance Companies by Registered Post or through a Staff member for getting the
assignment registered, alongwith a copy of the Surrender Value certificate for
getting its correctness authenticated

2. On review it has been decided to revise the guidelines for assignment of


policy. Existing vis a vis revised guidelines for assignment of policy as under:

Existing Revised
Policies are to be sent directly to the Policies are to be sent directly to the
Insurance Companies by Registered Insurance Companies by Registered Post
Post or through a Staff member for or through a Staff member for getting
getting the assignment registered, the assignment registered, alongwith a
alongwith a copy of the Surrender copy of the Surrender Value certificate
Value certificate for getting its for getting its correctness authenticated.
correctness authenticated.
i) For advances upto Rs.5 lac against
. life policies, after receipt of duly
assigned policy in favour of the
branch and surrender value certificate
from the office of the Insurance
company, a Registered Letter seeking
confirmation of assignment in banks
favour (As per Annexure) be sent to
the insurance company and in case,
confirmation from insurance company
is not received within 10 days from
the date of the letter, the same may
be treated as confirmed by the
insurance company and loan can be
disbursed thereafter.

ii)For advances above Rs 5 lac against


life policies, after receipt of duly
assigned policy in favour of the
branch and surrender value certificate
from the office of the Insurance
company, a Registered Letter seeking
confirmation of assignment in banks
favour (as per Annexure) be sent to
the office of the insurance company.
The loan can be disbursed only after
receipt of confirmation of assignment
from the Insurance company.

3. All other guidelines in this regard shall remain unchanged.

4. All the concerned are advised to note the above for meticulous compliance.

(N K SINGHAL)
GENERAL MANAGER

INDEX: ADVANCE AGAINST LIFE INSURANCE POLICIES

Annexure

BO:_______________
HO: 7, Bhikhiji Cama Place, New Delhi

LETTER OF CONFIRMATION OF ASSIGNMENT


(In case of advance against Life Policies)
Place________
Date _________
The Manager,
____________________________(Name of Insurance co.)
_______________Branch,
_________________

Dear Sir,

Policy No._____________________ of SH./Ms_____________________

We acknowledge receipt of Insurance policy No. ____________________ of


Sh_____________________S/o/D/o____________________________________________
____address___________________________________________________________
assigned in bank s favour from your office on____________.

You are requested to confirm the assignment of said policy in banks favour, as per
attachment, by return post.

Yours faithfully,

For Punjab National Bank

MANAGER
*************************************************************************************************
Confirmation letter

Place__________

Date __________

The Manager,

Punjab national bank

BO______________

Reg: Policy no.__________________of Sh/Ms ______________________________

Dear Sir,
We confirm having assigned the aforesaid policy in the name of Punjab National Bank BO
_______________ on _________________.

For (name of insurance company)

Authorised Signatory