MF will continue to offer insurance cover for SIPMutual Funds will keep on offering insurance cover for Systematic Investment Plan (SIP), as the dispute over insurance cover for mutual funds, has been resolved for a time being.
02 Oct 2008
Mutual Funds will keep on offering
insurance cover for Systematic Investment Plan (SIP), as the dispute over
insurance cover for mutual funds, has been resolved for a time being. Earlier,
the Life Insurance Council , the representative body of the life insurance
industry had decided to stop offering insurance cover on mutual fund Products
specially SIPs from October 1, 2008.
The Life Insurance Council has deferred the decision to discontinue offer of insurance covers on mutual fund products after receiving directive from Insurance Regulatory and Development Authority (IRDA).There was a conflict between insurance companies and mutual funds where the latter alleged that the insurance companies were miss-selling unit-linked insurance products (ULIPs) and insurance companies had problem with offering insurance cover with mutual fund investment.
A regulatory issue involved is that mutual funds and insurance companies come under the preview of different regulators. Mutual funds are regulated by Securities Exchange Board India (SEBI) while insurance companies are regulated by IRDA. Both the regulators will discuss the issues related to this product to arrive at a solution.