The Insurance Regulatory Development Authority (IRDA)
has said that while policyholders in the unit linked
insurance plans (ULIPs) can remain invested in the policy
for a short period after maturity they cannot withdraw
any amount or engage in fund management activities.
the policy holder will not have the option of switching
funds, either to equity or debt or withdraw the amount.
The decision to continue with the scheme after maturity
will purely be the option of the policyholder.
the permission has been granted for a short period of
a week to a fortnight after the maturity of the scheme,
no independent fund management activity will be allowed
since the product does not give any insurance cover.
stated that the option would enable policyholders, who
are not satisfied with the net asset value (NAV) during
maturity, to hold on for a better NAV.
policyholders could remain with the scheme for five
years after maturity and were entitled to partial withdrawal
of funds, which have been plugged by the new clarification.