Section 26 in Insurance Regulatory and Development Authority of India (Unit Linked Insurance Products) Regulations, 2019
26. Charges.
(a)The life insurers shall use uniform definitions for charges under all the Unit Linked insurance products in accordance with these Regulations.(b)Except for single premium products, in all other products, the overall charges in all Unit Linked insurance products shall be distributed in an even fashion during the lock-in period such that the:(i)premium allocation charge and policy administration charge shall be spread evenly during first 5 years of the policy contract, without wide fluctuations.(ii)charges could change from year to year in a reasonably orderly manner so that the difference between the maximum and minimum charges during first 5 years shall not vary by more than 3 times.(iii)charges during lock-in period shall be so structured such that the cap on net reduction in yield is achieved without any further additions to fund value at any time during and at the end of the first five years of the contract. This provision is applicable to both single premium products and other than single premium products.
