Under the Consumer Protection Code, a life assurance company may charge a fee for an optional extra benefit only if the consumer has demonstrated what?

• A. Does not positively object to paying for that benefit.
• B. Is an existing client of the life assurance company.
• C. Has confirmed that he or she wishes to purchase that optional benefit.
• D. Is a company or an individual acting in the course of their business.

Answer: (C)

In this topic, the key rule is that charges for optional add-ons can only be billed when the consumer has clearly decided to buy that add-on. The need for explicit consent protects consumers from paying for benefits they didn’t intend to purchase or didn’t fully understand.

So, the fee for an optional extra benefit is allowed only after the consumer has confirmed their wish to purchase that benefit. This ensures transparency and informed consent, preventing hidden costs or mis-selling. Merely not objecting, or being an existing client, or acting in a business capacity does not constitute that explicit purchase confirmation, so those scenarios don’t justify charging the fee.