Unit linked insurance plans (ULIPs) are today being sold both by life insurance companies as well as mutual funds. ULIPs offer insurance and investment in one product as compared to general products sold by mutual funds that offers only the investment avenue.
At mutual funds, these policies are being sold by agents who do not have the license to sell insurance. This leads to miss-selling as they lack in the product knowledge on insurance, as they haven’t passed the required IRDA exam. (Asset management company folk have to pass the AMFI exam, not the IRDA one). So, the Life Insurance Council has opposed mutual fund companies selling ULIPs. The group selling of ULIP and mutual funds is going against life insurance companies’ business.
The protest by the Life Insurance Council against this practice will protect customer interest and will help the life insurance companies in respect of product development.
November 11th, 2008 at 7:41 pm
Strict action has to taken by the regulator as this would be against public interest. There would be lot of miss selling plus the motive of selling Ulip or say selling insurance to the right person as per his need would never be achieved.
November 11th, 2008 at 7:48 pm
Why the regulator is silent and not taking any strict action. The piece is a real eye opener as this indicates lack of interest show by the regulator towards the public interest.
November 11th, 2008 at 7:54 pm
This piece has made be very cautious. Whenever i may take a Ulip plan, i would now ask the agent wheather he is qualified to sell me the Ulip or not.
November 11th, 2008 at 8:03 pm
The problem is highly serious. I totally agree and support the Life insurance council and condemn the act of the mutual fund houses.
November 11th, 2008 at 8:11 pm
I appreciate to address the problem. And i support the writers point of view. But i would like to add that even after training, the Insurance agents are not making justice to their job. I have seen and even experienced that most of the insurance agents only sell those product from which they can fetch more commission. They are not at all concerned about selling the right product to the right person as per he/her requirement. So to conclude both are corrupted .
November 19th, 2008 at 6:19 pm
I don’t think that the right of selling ULIPs should be taken away from the mutual funds as the insurance companies have already stolen the MFs bread and butter by getting this product in the market.