It is a war between two major controlling boards IRDA and SEBI. This war has become apparent when insurance companies selling Unit Linked Insurance Plans(ULIP) that is similar to the mutual funds but come with insurance cover. There is big controversy about the nature of ULIPs because of the high cost structure and miselling by the agents. If you don’t have the basic idea on this product, please read What is ULIP?. IRDA has recently set the cap for fess, that made ULIPs look more attractive to the investors.
Few weeks back SEBI has asked IRDA that insurance companies to the approval from SEBI to issue the ULIPs. The reason for the heat is it directly related to the market. With the ongoing war, this week SEBI has announced list of 14 major insurance companies to stop selling the ULIPs. The following are the list of companies:
SBI Life, ICICI Prudential, TATA AIG, Aegon Religare Life, Aviva Life, Bajaj Allianz, Bharti AXA, Birla Sunlife, HDFC Standard Life, ING Vysya Life, Kotak Mahindra old mutual life, Max New York Life, Metlife India and Reliance Life
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