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Regulation
for Manner
of Receipt of Premium
1.
Short title and
commencement
2.
Interpretation
3.
Manner of premium payments
4.
Commencement of risk
5.
Recovery of collection charges
In
exercise of powers conferred under sub-section (6) of section 64VB
and section 114A of the Insurance Act, 1938 (4 of 1938) and in
consultation with the Insurance Advisory Committee, the Authority
hereby makes the following Regulations, namely:--
1.
Short title and commencement
(1)
These regulations may be called the Insurance Regulatory and
Development Authority (Manner of Receipt of Premium) Regulations,
2002.
(2)
They shall come into force from the date of their publication in the
Official Gazette.
2.
Interpretation
All
words and expressions used herein and not defined but defined in the
Insurance Act, 1938 (4 of 1938), or in the Insurance Regulatory and
Development Authority Act, 1999 (41 of 1999), or in any rules or
regulations made thereunder shall have the meanings respectively
assigned to them in those Acts or rules or regulations as the case
may be.
3.
Manner of premium payments
The
premium to be paid by any person proposing to take an insurance
policy (hereinafter referred to as the proposer) or by the
policyholder to an insurer may be made in any one or more of the
following manner(s), namely,--
(a)
cash;
(b)
any recognised banking negotiable instrument such as cheques,
including demand drafts, pay orders, banker's cheques drawn on any
scheduled bank in India;
(c)
postal money orders;
(d)
credit or debit cards held in his name;
(e)
bank guarantee or cash deposit;
(f)
internet;
(g)
e-transfer;
(h)
direct credits via standing instructions of proposer or the
policyholder or the life insured through bank transfers; and
(i)
any other method of payment as may be approved by the
Authority from time to time.
4.
Commencement of risk
In
all cases of risks covered by the policies issued by an insurer, the
attachment of risk to an insurer will be in consonance with the
terms of section 64VB of the Act and except in the cases where the
premium has been paid in cash, in all other cases the insurer shall
be on risk only after the receipt of the premium by the insurer:
PROVIDED
that in the case of a policy of general insurance that where the
remittance made by the proposer or the policyholder is not realised
by the insurer, the policy shall be treated as void ab initio:
PROVIDED
FURTHER that in the case of a policy of life insurance, the
continuance of the risk or otherwise shall depend on the terms and
conditions of the policy already entered into.
5.
Recovery of collection charges
The
insurer may at its option recover the collection charges of the
instrument from the proposer.
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