Section 18 in Insurance Regulatory and Development Authority of India (Unit Linked Insurance Products) Regulations, 2019
18. Partial Withdrawals.
(a)Partial withdrawal shall be allowed only after completion of lock-in period.(b)In the case of child policies, partial withdrawals shall not be allowed until the minor life insured attains majority i.e. on or after attainment of age 18.(c)No partial withdrawal shall be allowed in case of Group Unit Linked insurance products.(d)In case of Unit Linked pension products, partial withdrawal:(i)can be made only after completion of lock-in period.(ii)shall not exceed 25% of the fund value at the time of partial withdrawal.(iii)it can happen only three times during the entire term of the policy.(iv)it shall be allowed only against the stipulated reasons:(1)Higher education of children.(2)Marriage of children.(3)For the purchase or construction of residential house.(4)For treatment of critical illnesses of self or spouse.(e)Partial withdrawals made shall be allowed from the fund built up from the top-up premiums, if any, as long as such fund supports the partial withdrawal and subsequently, the partial withdrawals may be allowed from the fund built up from the base premium. The insurer shall have the necessary systems built to identify the funds from the base premiums and funds from top-up premiums.(f)The partial withdrawals shall not be allowed which would result in termination of a contract.(g)The partial withdrawals with respect to the fund values from the base premiums shall only be counted for the purpose of adjusting the sum assured to be payable on death. Partial withdrawals made from the top-up premiums shall not be deducted for this purpose.
