Aviva unveils 11 ULIPs as per new IRDA guidelines
New Delhi, July 5 (UNI) Aviva Life Insurance today launched 11 modified Unit Linked Insurance Products (ULIPs), in accordance with the new guidelines issued by the Insurance Regulatory Development Authority (IRDA).
''We view the announcement of ULIP guidelines by IRDA as a massive endorsement of ULIPs by both the regulator and the Indian market. IRDA recognises that growth of the insurance sector is spearheaded by ULIPs. Hence, the regulatory body thought of coming out with new guidelines for ULIPs,'' Aviva Life Insurance MD Stuart Purdy said.
He added that the new guidelines pertain to product features like minimum policy term, lock-in period and partial withdrawals among others.
IRDA's new guidelines, announced on December 21, 2005 were aimed at protecting the interest of unit-liked policyholders enabling the customer to take an informed decision.
After the new guidelines were announced in 2005, all Insurance companies were given a window of six months ending June 30, 2006 to revamp their products and operations to meet the new guidelines.
The need for proper ULIP guidelines stemmed from the need to provide clarity to the customers and establish the long-term nature of ULIPs as against short-term investment tools.
Till now a unitised with profits fund, and 3 unit-linked fund options -- Secure, Balanced and Growth -- were offered by Aviva.
With the new guidelines, a new fund called Protector Fund has also been introduced in addition to the existing fund options.
In the last 3-4 years, almost every life insurance company operating in India has launched its version of ULIP. With this, the consumers were given option of different offerings from different players adding to the existing confusion.
The list of modified products, include EasyLife Plus, Freedom LifePlan, LifeBond 5, LifeBond, LifeSaver, LifeLong, LifeBond Plus PensionPlus, SaveGuard, Treasure Plus and YoungAchiever.
Aviva Life Insurance is a joint venture between Dabur and Aviva.
Current paid up capital of the company amounts to Rs 559 crore.
Dabur are the 74 per cent shareholder and Aviva the 26 per cent shareholder.
It has 30 million customers worldwide, and 317 billion pounds assets under management.
The Dabur group's consolidated annual sales are in excess of Rs 1,899 crore.
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