Irda restricts high-value Ulips' sale over phone

Thursday 07, April, 2011 The Insurance Regulatory and Development Authority (Irda) has disallowed sale of high-value unit-linked insurance products (Ulips) and variable insurance products over phone to curb mis-selling. Life insurance companies would not be allowed to sell Ulips with annual premiums exceeding Rs 50,000 for non-single premium policies and Rs 1,00,000 for single premium polices via telemarketing. According to the regulator's new guidelines on distance marketing of insurance products, variable insurance products (VIPs), too, should not be solicited or sold over distance marketing mode. The new guidelines shall be applicable from Oct 1. In case of variable insurance policy, a policyholder has the option to invest the bulk of the premium in one or more separate investment accounts like fixed-income investments, stocks, mutual funds, bonds, money market funds, etc, depending on his risk appetite.

[ Back to News Room ]

Back to Top^