Section 33 in Insurance Regulatory and Development Authority of India (Non-Linked Insurance Products) Regulations, 2019
33. Benefit Disclosure.
(a)Except for products where all the benefits are assured in absolute amounts at the outset of the contract, all other insurance products shall provide the prospective policyholder a customized benefit illustration at the point of sale, illustrating the guaranteed and non-guaranteed benefits at gross investment returns as stipulated by the Authority. Currently such gross investment returns are 4% p.a. and 8% p.a.(b)In case of pension products, a yearly statement shall be sent to each policyholder indicating:(i)the current accumulated value or available amount.(ii)the expected accumulated value on date of vesting on the basis of gross investment returns as stipulated by the Authority from time to time with the caveat, that the projected rate shall not reflect any guarantee. Currently the gross investment returns are 4% p.a. and 8% p.a.(iii)likely annuity amount based on the then prevailing annuity rates with the caveat that the projected rates shall not reflect any guarantee.(c)Such benefit illustration shall be signed by both the prospective policyholder, insurance agent or authorized persons of intermediary involved in sales process, as the case may be and shall form part of the policy document.(d)The benefit illustration as approved under the product filing procedure shall be part of the sales literature and shall be furnished to the prospective policyholder along with the sales literature before concluding the sale.Chapter: XI With Profit Fund Management
