Big clouds are roaming over ULIPs...

ULIP insurance policies safe: IRDA on SEBI's ban order




Insurance regulator IRDA on Saturday said that ULIP policies, under which a portion of funds is invested in the stock markets, are "safe and secure".



"Policy holders of the Unit Linked Insurance Products (ULIPs) offered by different insurance companies are assured that these policies are safe and secure", said IRDA chairman J Hari Narayan in a release that followed market regulator Sebi banning such schemes of select companies last night.



He further said that IRDA will take up the matter "expeditiously in the appropriate forum in accordance with the law."



Securities and Exchange Board of India (SEBI) in an order issued on Friday evening banned 14 life insurance companies, including those belonging to Tatas, SBI, ICICI, HDFC and Reliance Anil Ambani group from raising funds through unit linked schemes.

Source: Economic Times



FM’s Statement on ULIPs Issue



Following is the Finance Minister, Shri Pranab Mukherjee’s statement regarding regulation of Unit Linked Insurance Products (ULIPs):



“The Chairman, SEBI and Chairman, IRDA held discussions on the jurisdiction over Unit Linked Insurance Products (ULIPs). To resolve any ambiguity and to ensure smooth functioning in the markets, the regulators have agreed to jointly seek a binding legal mandate from an appropriate court. Meanwhile, status-quo ante is being restored.”


Source: PIB