Ulips overhauled; five-year lock-in & lower agent fees...

Insurance Regulatory and Development Authority (Irda) announced drastic changes to Unit Linked Insurance Plans (Ulips) on Monday, cutting agent commissions, increasing the lock-in period and making it a more risk-based product. The move follows last week s government ordinance on these popular insurance-investment plans, bringing them squarely under Irda s purview. The ordinance itself was prompted by a regulatory turf battle between market regulator Sebi and insurance regulator Irda over supervising Ulips. The latest Irda circular has specified some elements to be incorporated in all Ulips sold from September 1. The key change is an increase in investment lock-in period for all ...

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