The circular regarding the lock-in period is likely to be issued in the next ten days
Insurance regulator, IRDA of India has stated that it would raise the lock-in period from three to five years to check mis-selling of Unit Linked Insurance Policies (ULIPs) – reported Business Standard.
R. Kannan, Actuary of IRDA, said: We are going to increase the lock-in period for ULIP products from 3 years to 5 years.
ULIPs are investment cum insurance products which invest in equity and debt market depending on the choice of the policy holders.
Reportedly, Mr. Kannan stated that the circular regarding the lock-in period for ULIP products is likely to be issued in the next ten days. The new norm would be applicable to all the ULIPs filed on or after 1st of October. Presently, the minimum period for ULIPs is five years, however, partial withdrawal is allowed after three years.
Last month, IRDA had asked all the life insurance companies not to lay down surrender charge for policies surrendered from the fifth policy year, quoted the business magazine.