Section 47 in Insurance Regulatory and Development Authority of India (Unit Linked Insurance Products) Regulations, 2019
47. Disclosure Norms.
(a)For all Unit Linked insurance products, all Life Insurers shall necessarily and explicitly mention, using the same font size, in all the sales brochures, prospectus of Insurance products, in all promotional material and in policy documents:(i)On top of each document including the proposal form mention, "In this policy, the investment risk in investment portfolio is borne by the policyholder".(ii)The various funds offered along with the details and objective of the fund.(iii)The minimum and maximum percentage of the Investments in different types (like equities, debt etc.), investment strategy so as to enable the policyholder to make an informed investment decision. "No statement of opinion as to the performance of the fund shall be made anywhere."(iv)The definition of all applicable charges, method of appropriation of these charges and the quantum of charges that are levied under the terms and conditions of the policy.(v)The maximum limit up to which the insurer reserves the right to increase the charges subject to prior clearance of the Authority.(vi)The fundamental attributes and the risk profile (low, medium or high) of different types of investments that are offered under various funds of each Unit Linked insurance product.(b)For all Unit Linked insurance products, the insurer shall ensure the following latest information to be available on its website and shall be;(i)Annual report covering the fund performance during the preceding financial year in relation to the economic scenario, market developments etc.(ii)The investment strategies and risk control measures adopted.(iii)The changes in fundamentals, such as interest rates, tax rates, etc., affecting the investment portfolio.(iv)The composition of the fund (debt, equity and money market.), analysis within various classes of investment, investment portfolio details, sectoral exposure of the underlying funds and the ratings of investments made.(v)Analysis according to the duration of the investments held.(vi)Performance of the various funds over different periods like 1 year, 2 years, 3years, 4 years, 5 years and since inception along with comparative benchmark index.(c)All the Life Insurers shall issue the periodical statements of accounts to policyholders each year disclosing the actual charges levied and the fund value at the beginning and end of the year.(i)Unit statement account shall form a part of the policy document.(ii)Unit statement account shall make a reference to the terms and conditions applicable under the respective policy document.(iii)Unit statement account shall be issued on every policy anniversary and also as and when a transaction takes place.(d)No unit statements value shall be sent to the policyholder in respect of transactions related to monthly debit of mortality and other charges stated in the contract.(e)All the insurers shall submit the disclosures relating to discontinued policies as stipulated below:(i)The funds arising from discontinuance policies shall be shown under a separate head in the Balance Sheet in the following manner:(1)Funds for discontinued policies;(a)Discontinued on account of non-payment of premium;(b)Others(2)The amount refunded to the policyholders and amount transferred to the "Funds for discontinued policies" during the financial year shall be shown under a separate head.(ii)The following disclosures shall be made in the notes of the accounts:(1)Number of policies discontinued during the financial year.(2)Percentage of discontinued to total policies (product wise) during the year.(3)Number and percentage of the policies revived during the year.(4)Charges imposed on account of discontinued policies.Chapter-XIV Allocation and Redemption of Units
