CIRCULAR NO. IRDA/LIFE/CIR/GDL/057/03/2015, DATED 31-3-2015

GUIDELINES ON FEE FOR GRANTING WRITTEN ACKNOWLEDGEMENT OF RECEIPT OF NOTICE OF ASSIGNMENT OR TRANSFER OF A POLICY OF INSURANCE

CIRCULAR NO. IRDA/LIFE/CIR/GDL/057/03/2015DATED 31-3-2015

Section 38(7) of the Insurance Act mandates that every insurer shall grant a written acknowledgement of the receipt of Notice of Assignment or Transfer on payment of such fee as specified by the Regulations. The provisions of section 38(7) of the Insurance Act also envisage that every insurer shall record the fact of the transfer or assignment together with the date thereof and the name of the transferee or the assignee. Therefore, pending notification of the Regulations, the Authority issues the following guidelines specifying the fee for granting a written acknowledgement as envisaged in these provisions. The fee that may be collected shall be subject to these Guidelines.

Guidelines:

(1) An Insurer is permitted to collect the following fee for granting a written acknowledgement of the receipt of notice of assignment or transfer.

(a) In respect of those policies that are issued in electronic form as specified by the regulations under the provisions of section 14(2) of the Insurance Act as modified from time to time, the fee collected shall not exceed Rs. 50 (Rupees fifty only) inclusive of all applicable taxes.
(b) In respect of policies issued other than those referred under clause (1)(a) above the fee collected shall not exceed Rs. 100 (Rupees Hundred Only) inclusive of all applicable taxes.

(2) No other fee shall be collected for rendering any other services such as, recording the fact of the transfer or assignment or any other services connected to the assignment or transfer prescribed in section 38 of the Insurance Act as modified from time to time.

These Guidelines are effective from 1st April, 2015 and are issued under section 14(2)of IRDA Act, 1999.