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Union of India - Section

Section 5 in Insurance Regulatory and Development Authority of India (Unit Linked Insurance Products) Regulations, 2019

5. Benefit payable on death and benefits offered under the Health Cover.

(a)From inception of the policy, all individual Unit Linked insurance products shall offer at least the minimum sum assured as stipulated in the Table 5.c that becomes payable:
(i)on death or
(ii)to make benefits payments under the health cover, as applicable.
(b)The table 5.c below specifies the minimum sum assured under Unit Linked insurance products where:
(i)AP is Annualized Premium selected by the policyholder at the inception of the policy excluding the taxes, rider premiums and underwriting extra premium on riders, if any.
(ii)SP is the Single Premium which is chosen by the policyholder at the inception of the policy, excluding the taxes, rider premiums and underwriting extra premium on riders, if any.
(c)The minimum sum assured shall be at least equal to:
Table 5.c
Type ofProducts Minimum Sum assured
Life Single Premium (SP) Policy 125 percent of single premium
Life Regular Premium (RP) including LimitedPremium Paying (LPP) Policy 7 times the annualized premiums
Health Regular Premium (RP) including LimitedPremium Paying (LPP) Policy 5 times the annualized premium or Rs.100,000 perannum whichever is higher
(d)In respect of pension products, the minimum sum assured as in Table 5.c is not mandatory.
(e)Other Conditions:
(i)In case of Unit Linked insurance products offering death benefit as stipulated in Regulation 5(c), the sum assured payable on death shall not be reduced (save as provided in Regulation 37(a)) except to the extent of the partial withdrawals made during the two-year period immediately preceding the death of the life assured.
(ii)No cover shall be extended after the expiry of the policy term except as mentioned under Regulation 19 (f).
(iii)In case of death due to suicide within 12 months from the date of commencement of the policy or from the date of revival of the policy, as applicable, the nominee or the beneficiary of the policyholder shall be entitled to the fund value, as available on the date of intimation of death.
Further any charges other than Fund Management Charges(FMC) and guarantee charges recovered subsequent to the date of death shall be added back to the fund value as available on the date of intimation of death.
(iv)In case of fraud or misstatement or suppression of material fact, the policy shall be treated in accordance with the provisions of Section 45 of the Insurance Act, 1938.
(v)For policies issued on minor's life, the date of commencement of risk may start anytime on or upto two years from the date of commencement of the policy or on the policy anniversary after attainment of majority, whichever is earlier.
(f)At no time the death benefit under a life insurance product or a benefit assured under a pension product on death or a health related benefit under a health insurance product shall be less than 105 percent of the total premiums received upto the date of death under the base benefit including top-ups premium paid and may exclude partial withdrawals made during two-year period immediately preceding the death of the life assured.