Life insurance companies on Tuesday said the government’s intervention to end the turf war between SEBI and IRDA will clear confusion among investors over ULIPs and help in reverting to normal business.
“We welcome the initiative as it clarifies the concerns of our customers. Anxiety on the part of our customers could have caused delay in payment of renewal premiums,” Bajaj Allianz Life chief operating officer V. Philip said.
“There was some confusion earlier but now there is no confusion,” Aegon Religare Life Insurance CEO Rajiv Jamkhedkar said.
As regards the impact of the tussle between SEBI and IRDA over sale of ULIP schemes, he said, the company has been witnessing normal business. “The sale is normal, there is no change,” Mr. Jamkhedkar added.
Another life insurance company, which did not wish to be identified, said customers sought information but it would be too early to comment on the impact of ULIP sales.
The official further said that intervention at the highest level will clear confusion about ULIPs and restore confidence of customers.
When contacted, an ICICI Prudential Customer Care executive said, “The traffic is normal and customers are not exiting or selling their schemes. In fact, new policies are also being bought.”
Finance Minister Pranab Mukherjee on Monday asked IRDA and Securities and Exchange Board of India (SEBI) to “jointly seek a binding legal mandate from an appropriate court” on the unit linked insurance products (ULIPs).