IRDA urges insurers to reveal Ulip commission

By SiliconIndia   |   Thursday, April 29, 2010
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Mumbai: In attempt to bring about more transparency, Insurance Regulatory and Development Authority (IRDA) has asked life insurers to disclose the commission paid to agents for unit-linked products (Ulips). The new rule will come into effect from July 1, 2010, reports PTI. According to IRDA, the information will bring about more transparency by providing prospective policyholders clear information about the amount that has been collected from them as brokerage or commission. The decision to disclose commission comes at a time when market regulator SEBI and IRDA are locked in a battle for control over Ulips - or equity linked insurance plans. The commission paid on Ulips has been a long-standing grouse of the mutual fund industry. Mutual funds have been complaining that the hefty cut paid to agents as commission on Ulips has led to agents pushing only unit-linked plans. The insurance watchdog's decision also comes seven months after SEBI decided to ban entry load on mutual fund schemes, which includes commission that investors pay at the time of purchase.
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