Question

How are the premiums payable on a rider policy treated?

a.

They are completely separate from the main policy premiums

b.

They are not bifurcated into costs and expenses

c.

They include the cost of relevant expenses

d.

They are paid directly to the insurer

Posted under IC 14 Regulations of Insurance Business

Answer: (c).They include the cost of relevant expenses Explanation:The premiums payable on a rider policy include the cost of relevant expenses, as per Regulation 3 (1) of IRDA (Protection of Policyholders’ Interests) Regulations, 2002. It is required that these expenses be bifurcated into costs and expenses, ensuring transparency and accountability in the premium structure.

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Q. How are the premiums payable on a rider policy treated?
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