Common use of Switch Clause in Contracts

Switch. 12.1. Under the switch facility, the Master Policyholder is allowed to change its investment pattern by moving from one Fund to the other Fund(s) amongst the Funds offered under this Policy. All switches will be done on an amount basis i.e. the Master Policyholder will have to specify in writing the amount to be switched to/from one or more Funds, as the case may be. 12.2. We will process the Master Policyholder‟s request for switch only if We are satisfied that the proposed switch is in line with Our rules applicable at that time of switching. 12.3. Following receipt of the Master Policyholder‟s written request and provided such request satisfies Our rules applicable at the time of switching, We will cancel the Units in the Fund that the Master Policyholder chooses to exit and purchase the Units in the Fund as chosen by the Master Policyholder. 12.4. Under this Policy, the minimum amount that can be switched is Rs. 5,00,000 (Five Lakhs). However, if the Master Policyholder intends to switch completely out of a Fund, an amount of less than Rs. 5,00,000 (Five Lakhs) will be allowed to be switched. This limit is subject to Our review from time to time and approval by the Authority. 12.5. We will process the first 6 (Six) switches in a Policy Year free of any charge provided the total switch amount is less than Rs. 50,00,000 (Fifty Lakhs). Any subsequent switches and switches of an amount exceeding Rs. 50,00,000 (Fifty Lakhs) in a Policy Year will be subject to a switching fee of Rs. 500 (Five Hundred) per switch, for which We will cancel the Units from the Fund that the Master Policyholder has switched in. The charge on switch may be increased by Us subject to the prior approval of the Authority, provided the switching fee at no point in time shall exceed Rs.1,000 (One Thousand) per switch effected. 12.6. On any single business day, the amount of monies to be switched under this Policy cannot exceed 25% (Twenty Five percent) of the amount available in the Master Policyholder‟s Unit Account or Rs. 5,00,00,000 (Five Crores), whichever is higher. 12.7. We may impose a complete or partial bar on switching into and out of a specified Fund with the prior approval of the Authority, for a reasonable time period but not exceeding a time period of 60 (Sixty) days, in the interest of maintaining the stability of the Funds or if necessary for protecting the interest of the other existing Unit holders. Such a situation may arise only under extraordinary circumstances such as non-availability of market prices, occurrence of a catastrophe, bulk exit request(s) that might lead to Fund volatility, etc. where the declaration of the NAV is not possible. 12.8. The switching fee payable for switching of monies from one Fund to another Fund shall be subject to applicable service tax and education cess, if any, as per the applicable laws and shall be entirely borne by the Master Policyholder.