Should Ulips be seen as an investment or insurance?
Ulips are insurance contracts that provide benefits on death or disability and can be used for treating certain medical conditions. Money can also be withdrawn as pension or annuity as per the Insurance Act.
Who should ideally invest in Ulips?
Ulips are long-term products. It is important that those who buy Ulips don't foreclose the contracts before the end of five years. The customers interested in shortterm investments should refrain from buying a Ulip.
Is it safe to invest in Ulips?
All Ulip contracts in existence and possible future contracts are safe and will be supervised by Irda.
Has Irda been approached recently by any insurance company for approval of new Ulip products?
No company has filed for approval of new products as per guidelines that will be effective from 1 July 2010.
What was the rationale for the proposal to have mandatory life cover in unit-linked pension plans?
Life cover in pension products has been in existence since 2005. The current instructions are a reiteration of the earlier guidelines. However, currently, it is permissible to offer pension products without life cover.
With increasing competition, the prospects for consolidation have increased. Where do policyholders stand in case of a merger or acquisition?
Irda will manage all mergers or acquisitions of Indian insurance companies and will fully protect the interests of the policyholders.
Banks are allowed to sell insurance products of only one company each in life and non-life segments. Is there a case for easing norms?
There is no such proposal pending before the authority.
