Insurance regulator IRDA, which has won its turf war with market watchdog SEBI over regulation of ULIPs, is expected to tighten norms for these schemes, including commission charges, to make them attractive for investors.
There would be stricter and stringent distribution norms, leading to lowering of commissions on the sale of such products, sources said.
Currently, commission charges are as high as 50 per cent of the first-year premium.
According to IRDA Chairman J Hari Narayan, it will frame new guidelines for these products to make them more attractive for policy holders.
At the same time, the regulator plans to come out with directives to improve the transparency element of such hybrid products, which involve both investment and insurance.
The regulator will also try and address the issue of increasing the lock-in-period and raising life cover.
More Details :- IRDA to make ULIPs investor-friendly
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