Not all ULIP products are to be cleared by Sept 1: IRDA

The Insurance Regulatory Development Authority (IRDA) has said that not all unit-linked insurance plan (ULIP) products are to be cleared by September 1, reports CNBC-TV18.

The regulator will clear some ULIP products of each company by 1 September.

The product clearance will not to depend on the filing date, IRDA said. The remaining ULIP products are to be  cleared in the next lot.

IRDA had issued new ULIP guidelines on June 28.

The new guidelines are to be effective from 1 September.

On July 20, CNBC-TV18 reported that IRDA wants a complete overhaul of the rule governing insurance agents.

The regulator is pushing for a change in rules so that insurance is sold as long-term products. The idea behind the regulations is to encourage investors to stay invested in the long-term.

These rules are aimed at reducing the surrender rate and the number of policies that lapse.