Life insurers ask for additional time to follow new rules


New Delhi: To follow new guidelines on unit-linked insurance plans (Ulips), life insurance companies have sought more time, hopping that the additional time will help them to convince regulator to drop some of the new rules, reports Dheeraj Tiwari of the Economic Times. The life insurers have been asked by the insurance regulator, Insurance Regulatory and Development Authority (Irda) to follow the newly made norms from September 1. According to the CEO of a life insurance company, the executive committee of life insurance council has sought at least three month extension in implementing the proposal. It has also requested Irda to allow insurance companies to offer pension plans without guaranteed returns with the attached health or life cover. The head of a private sector life insurer said that building a health or life cover will restrict the choice of customers. He further added that a large section of people may be left out, since mandatory life or health cover would translate into hefty premiums. The new guidelines have made it mandatory for insurance companies to bundle a life or health cover with pension plans. The life insurance companies have also been asked to provide a guaranteed 4.5 percent return on all pension products by the regulator.