IRDA to contest SEBI order (With SEBI bans 14 insurance companies from selling ULIPs)

April 10th, 2010 - 11:05 pm ICT by IANS  

Chennai, April 10 (IANS) The Insurance Regulatory and Development Authority (IRDA) Saturday said it will challenge, in a legal forum, market watchdog Securities and Exchange Board of India’s order banning 14 life insurers from selling unit linked insurance products (ULIPs).
“Policyholders of the unit linked insurance products offered by different insurance companies are assured that these policies are safe and secure and the matters arising out of the recent orders of the SEBI will be addressed expeditiously in the appropriate forum in accordance with the law,” the IRDA said in a statement released here.

The 14 companies banned by SEBI are Aegon Religare, Aviva, Bajaj Allianz, Bharti AXA, Birla Sun, HDFC Standard, ICICI Prudential, ING Vyasa, Kotak Mahindra, Max New York, Metlife India, Reliance Life Insurance, SBI Life Insurance and TATA AIG.

ULIPs constitute nearly 90 percent of the sales for many private life insurers. The industry average is around 85 percent.

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