The Hindu Business Line : IRDA issues new norms for unit-linked products

Hyderabad, Jan. 3 From February 1, insurers selling unit-linked insurance products will have to be more transparent in disclosures pertaining to the charges, investment funds and benefits to policy holders.

The Insurance Regulatory and Development Authority has notified some norms to be followed by the insurers in the benefit illustrations for unit-linked insurance products.

According to a notification hosted on its Web site, the regulator directed that all the life insurance companies should list out all charges to be paid and also amounts available for investments in each policy year by using information specific to a particular policyholder.

The insurers must also give figures separately in a table about guaranteed benefits and non-guaranteed benefits each policy year keeping in view the interest rates as specified by the Life Insurance Council. At present, the interest rates used for benefits, illustrations are 6 per cent and 10 per cent per annum respectively.

Two tables containing details about the charges/funds available for investments and guaranteed/non-guaranteed benefits should also become part of the policy documents and should duly be signed by the policyholders, the IRDA said.

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