Cancellation or change
in nomination in insurance policies
now comes at a cost as regulator IRDAI has
allowed life insurers to charge up to Rs 100 for any such modification.
For policies obtained online, the fee is up to Rs 50. The IRDAI guidelines for 'Registering Cancellation or Change of Nomination' have come into effect from April 1, 2015.
For policies obtained online, the fee is up to Rs 50. The IRDAI guidelines for 'Registering Cancellation or Change of Nomination' have come into effect from April 1, 2015.
The Insurance Act
allows the holder of a life policy to nominate, on his own, a person or persons
to whom the money shall be paid in the event of his death while effecting the
policy or any time before it matures.
"In respect of
those policies that are issued in electronic form... the fee collected shall
not exceed Rs 50. In respect of policies other than those, the fee collected
shall not exceed Rs 100," the Insurance Regulatory and Development
Authority of India (IRDAI) said in an order.
"No fee other
than what has been prescribed shall be collected for registering a nomination
either at the time of effecting a policy of life
insurance or at any time thereafter or towards any other services
relating to nomination," the regulator added.
Source:-The Economic
Times
