| 2A.4.1 | A microinsurance policy may not have a contract term of more than 12 months. |
| 2A.4.2 | The value of the policy benefits under a microinsurance policy or a funeral policy may not exceed the maximum amounts as prescribed by the Prudential Authority. |
| 2A.4.3 | A microinsurance policy must, upon expiry of its contract term, either be— |
| (a) | automatically renewed; or |
| (b) | terminated in accordance with the requirements set out in these Rules. |
| 2A.4.4 | Despite the terms of an assistance policy entered into before 1 June 2009, the policyholder or member is entitled to demand that a policy benefit which is expressed otherwise than as a sum of money must be provided as a sum of money, in which case the sum of money must be equal in value to the policy benefit that would have been provided by the insurer or any person acting on behalf of the insurer had the policy benefit been provided otherwise than as a sum of money. |
| 2A.4.5 | Where an assistance policy, microinsurance policy or a funeral policy that provides for a policy benefit expressed otherwise than as a sum of money is entered into on or after 1 June 2009, that policy must— |
| (a) | provide that the policyholder or member is entitled to demand that the policy benefit be provided as a sum of money in lieu of the benefit on the occurrence of the event insured against; and |
| (b) | subject to rule 2A.4.6, state the amount of the policy benefit that is to be provided as a sum of money, which amount must be equal to the value of the policy benefit expressed otherwise than as a sum of money. |
| 2A.4.6 | Where due to the nature of the policy benefits the requirements in rule 2A.4.5(b) cannot reasonably be met, the policy must— |
| (a) | state the reason why the amount of policy benefits that is to be provided as a sum of money cannot be stated upon entering into or varying of the policy; and |
| (b) | confirm that the monetary value of the policy benefit concerned will be determined and communicated at claims stage and disclosed to the claimant to ensure that the policyholder is aware of how the monetary value was arrived at. |
| 2A.4.7 | When a policyholder or member chooses to receive policy benefits in money as set out in rules 2A.4.4 and 2A.4.5 above, an insurer or any person on behalf of an insurer, may not charge the policyholder or member any administration or similar fee in respect of that benefit. |
[Rule 2A.4 inserted by rule 6(c) of Notice No. 997, GG 41928, dated 28 September 2018]
