Question

What does the Switching Charge refer to?

a.

A charge levied on the premium payment

b.

A charge levied on the sum assured

c.

A charge levied on switching of monies from one fund to another within the product

d.

A charge levied on policy administration

Posted under IC 14 Regulations of Insurance Business

Answer: (c).A charge levied on switching of monies from one fund to another within the product Explanation:The Switching Charge is a charge levied on switching (transfer) of monies from one fund to another fund available within the product. This charge is applied at the time of effecting the switch and is typically a flat amount per each switch.

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