Section 19 in Insurance Regulatory and Development Authority of India (Unit Linked Insurance Products) Regulations, 2019
19. Settlement Options under Unit Linked Insurance Products.
(a)The insurer may provide settlement options:(i)On maturity or death under Unit Linked life insurance products and Unit Linked health insurance products.(ii)on death under Unit Linked pension products.(b)Settlement options shall clearly indicate in the promotional material, the inherent risk being borne by the policyholder during the period and shall be explicitly understood by the policyholder.(c)The period of settlement shall not, in any case, be extended beyond a period of five years from the date of maturity or death whichever is earlier.(d)In case of maturity, the first instalment under settlement option shall be payable on the date of maturity.(e)Switches may be allowed during the settlement period. Partial withdrawals shall not be allowed during the settlement period.(f)In case of settlement period after maturity, the risk cover shall be maintained at 105% of the total premiums paid. Accordingly, mortality charges will be deducted.(g)The insurer may levy fund management charge, switching charge and mortality charges if any, during the settlement period. The Insurer shall not levy any other charges.(h)Complete withdrawal may be allowed at any time during the settlement period without levying any charge.Chapter-VIII Pension Products
