IRDA (Protection of Policyholders Interests) (Amendment) Regulations, 2002

2 THEGAZEITEOFINDIA:EXTRAORDINARY [PARTill-SEc.4} =========--===""'=========---,====-=================== INSURANCE REGULAlORY AND DEVELOPMENT AUIBORITY NOTIFICATION New Deihl. U1e 16th October, 2002 INSURANCE REGULATORY AND DEVELOPMENT AllfHORITY (PRO'TECTION OF POLICYHOLDERS' INTERESfS) (AMENDMENT) REGULATIONS. 2002 F. No. IRDA/Re~./10/2002.-ln exercise of the powers conferred by Clause (zc) of sub-section (2) of Section , 114A of lhe Insurance Act. 1938 (-+ of 19:l8) read\\ ith Sections 14 and 26 of the Insurance Regulatory and Development AuthoritJ Act. 1999 (41 of 1999). the AulJ1onty. in consullat1011 with the Insurance Advisory Committee. hereby makes the folio" ing regulatJons to amend the Insurance Regulatory and Development Authprity (Protection of Policyholders' Inter- ests) Regulations. 2002. na1t1el~ :- ,. . ,, ..... I (J) These regulations ma) be caJled the Insurance Regulatory and De\'elopmem Authority (Protection of Policyholders· Interests) (Amendment) Regulations. 2002. (2) The) shall come into force on the date oft heir pUWicat1on in the Official Gazette. ,- ...,'"" ·-.# ,.,. j,. 2. For the existing sub-regulation (I) of regulation 3 of the Insurance Regulatory and Development Authority (Proteclion of Policyholders· Interests) Regulations. 2002 the following shall be substituted :- ··o) Nol\\ itlJStanding an) thing mentioned in regulation 2(e) above. a prospectus of any msurance product shall clear!~ state the scope of benefits. the extent of111surance cover and man e.xphdte manner e~-plain the warranties. exceptions and conditions of the insurance co\'er and, in case of life insurance. whether the product is participat- ing (with-profits) or non-participating (without-profits). The allowable rider or riders on the product shall be clearly spelt out \\it.h regard to their scope of benefits. and in no case. the premium relatable to health related or critical illness riders in case of tenn or group products shall e.xceed J 00% of prerntum under the basic product. All other riders put together shall be subject to a ceiling of 30% of the premium of the basic product. Any benefit arising under each of the riders shall not exceed the sum assured under the basic product : Pro, ided that the benefit amount under riders shall be subject to Section 2( 11) of t11e Insurance Act. 1938. l-:Xplnnn11on The nder or riders attached to a life policy shall bear t11e nature and character of the main policy, viz. participating or non-participanngand accordingly the life insurer shall make provisions. etc .. in its books.". N. RAN GACH.A.RY. Chairrnan f ADVf. Ill/IV/161/2002-E~.] rrint~ h~ th" l\tanag,:r. Govt. of India fr.:$s. Riug Rood, l\ta)',1p11r,. Ne" Delhi-110064 ond Published by the Controller of Publicati1ms. Oelhi-110054