Unit-linked insurance products to follow new norms, says IRDALife insurance companies selling ULIP will have to follow certain norms notified by the IRDA with effect from February 1, 2008.
Apnainsurance.com Research Bureau
04 Jan 2008
Life insurance companies that sell unit-linked insurance products (ULIP) will have to follow certain norms which have been notified by the Insurance Regulatory and Development Authority (IRDA) with effect from February 1, 2008.
The ULIP sellers have to disclose their charges, investment funds and the benefits which they will offer to the policy holders, as a practice.
The insurers have been directed by the IRDA to mention the applicable charges and the amounts available for investments by a particular policy holder, instead of providing generic information for each policy year.
A separate table for each policy year should be prepared, based on the interest rates in levied by the Life Insurance Council for guaranteed and non-guaranteed benefits.
The IRDA says that the all these notifications should also form a part of the policy document and is to be duly signed by the policy holder.