Section 17 in Insurance Regulatory and Development Authority of India (Non-Linked Insurance Products) Regulations, 2019
17. Group Savings Non-Linked Pension Products.
(a)For all group savings non-linked pension products with the defined benefits subscribed to by an employer, where the scheme does not maintain individual member accounts and only maintains a Pension fund:i. There shall be an assured benefit that shall be applicable on the entire Pension fund available with the insurer. However, there shall also be an assured benefit that is available on death of every member.ii. For exits on account of death, retirement or any other exit allowed in accordance with the scheme rules as agreed at the inception of the contract with group policyholder, the insurer shall make payments from the Pension funds, subject to availability of such funds, as per the terms of the scheme rules applicable to the member who is exiting.iii. Except for exits or provisions as allowed as per the scheme rules, no other withdrawals shall be allowed.(b)For all group savings non-linked pension products with the defined contributions subscribed to by an employer, where the scheme maintains individual member accounts:i. There shall be an assured benefit that shall be applicable on each of such individual accounts.ii. For exits on account of death, retirement or any other exit allowed in accordance with the scheme rules as agreed at the inception of the contract with group policyholder, the insurer shall make payments from the Pension funds, subject to availability of such funds, as per the terms of the scheme rules applicable to the member who is exiting.iii. Except for exits as per the scheme rules, no other withdrawals shall be allowed.(c)Provisions stipulated in Regulations 15 and 16 under these Regulations shall not be applicable to group non-linked pension products; however, the benefits on exits shall be subject to the scheme rules.(d)Provisions stipulated in Regulation 19(h) under these Regulations shall apply in case of complete surrender of the policy.(e)Where the group policyholder maintains Pension funds with more than one insurer, the group policyholder shall have the option to choose any insurer to purchase available annuity.Chapter: VII Annuity Products
