Section 35 in Insurance Regulatory and Development Authority of India (Non-Linked Insurance Products) Regulations, 2019
35. Market Value adjustment.
(a)Market value adjustment shall not be allowed under:(i)Non-linked Individual products(ii)Par and non-par group savings products where the exits are in accordance with the scheme rules filed with the insurer at the outset, except as stipulated in (b) below.(b)Market value adjustment may be allowed for par and non-par group savings products, for bulk exits and complete surrender, where the bulk exits are clearly defined in the contract and provided there is an investment guarantee assured throughout the policy.(c)Market value adjustment shall be defined explicitly & objectively and approved under product filing procedure. There shall not any discretion left to the insurer in arriving at the market value adjustment.(d)Market value adjustment shall not be applicable for the amounts below the amount which represents the bulk exits and shall be applied only to the amount which is over and above the amount representing bulk exit.(e)Market value adjustment shall be applied only if:(i)The assets are earmarked separately for the product.(ii)The revaluation of assets at the time of market value adjustment is carried out on the entire portfolio of assets.(f)For the purpose of these Regulations, for par and non-par group savings products:(i)If the amount to be paid on total exits during the policy year exceeds 25% of the policy account values as at the beginning of the year, such transactions shall be treated as bulk exits, where exit shall be as per the scheme rules and(ii)Exit shall mean exit of the member from the group.Chapter: XIII Procedure For Implementation and Other Provisions
