IRDA wins ULIP battle: Govt to amend laws to revive sales

NEW DELHI: Insurance industry regulator Irda has emerged the victor in a high-profile tussle over the regulation of so-called unit-linked insurance plans or Ulips, with the government ruling that it and not the market watchdog Sebi would oversee the product.

The government is “clarifying by way of an explanation that life insurance business shall include any unit-linked insurance policy or scripts or any such instruments,’’ said a statement from the press information bureau. “This would set at rest all the issues regarding Ulips between the two financial regulators.’’

The government promulgated an ordinance late on Friday to amend four major laws that could revive the sale of Ulips and force the mutual fund industry to look for new avenues to get investors.