IRDAI has issued a gazette notification in which it has allowed life insurance companies to charge administration fees to incorporate changes in nomination details of insurance policies. Now, life insurance companies can charge fees from policyholders for cancellation or change of nomination in a life insurance policy.
Life insurance companies can charge up to Rs.100 to change or cancel nomination in offline policies and up to Rs.50 to carry out such services in online policies. However, the discretion of charging fees to carry out such services has been left to insurers. Insurers are required to issue written acknowledgment to policyholders after executing such requests.
Earlier, the insurance companies were not allowed to charge fee to incorporate such changes.