Coimbatore: The Coimbatore Consumer Cause (CCC) has urged Union Finance Minister Pranab Mukerjee to ensure that the control over Unit Linked Policies (ULIP) vested with the Securities and Exchange Board of India (SEBI) for effective monitoring and regulation to protect the public interest.
In a memorandum, K. Kathirmathiyon, Secretary of CCC, pointed out that the tussle between SEBI and Insurance Regulatory and Development Authority (IRDA) on regulating ULIP had gone to court.
Practically, ULIP was promoted as a good investment for earning quick money by aggressive marketing, particularly during 2006 – 07 and very huge interests were promised at the time of maturity by many insurance agents. The policy holders were not aware of the fact that this was an investment and not insurance.
The IRDA had cautioned the public and clarified that such projections were misleading and inflated and did not have its approval.
Though the insurance companies were also aware of this fact they did not intervene as they were focused on boosting their business. So, the responsibility for the misleading advertisements should rest only with the insurance companies.
Mr. Kathirmathiyon suggested that the control over ULIP should rest with the SEBI.