Life insurers can't charge more than Rs 100 for change in nominee

For e-policies issued through an insurance repository, fee should not exceed Rs 50

Insurance Regulatory and Development Authority of India (Irda) said on Friday that insurance companies should not collect more than Rs 100 for cancelling or changing the name of nominees.

According to the insurance ordinance, insurers can charge a fee for changing or cancellation of a nomination.

For e-policies issued through an insurance repository, the fee should not exceed Rs 50, the regulator said. For paper policies, the upper limit is Rs 100.

No other fee can be collected for registering a nomination.

The regulator also asked life insurers to see that the holder of a policy of life insurance on his own life effects a nomination in accordance to Section 39 of The Insurance Laws (Amendment) Ordinance, 2014.