The Insurance Regulatory and Development Authority is proposing to come up with guidelines for Universal Life Products to prevent "mis-selling" of ULPs, a relatively new product in the market.
The guidelines may possibly cover issues like fee structure charges.
"We found some infirmities in the unit linked product (ULIP) design, making it prone for mis-selling to the customers. So, we want to have a check on this kind of things to inculcate more transparency into a product. As ULPs are relatively new products in the market, our efforts are driven to check any mis-selling of these products," J Hari Narayan, Chairman of IRDA, said on Saturday.
Talking about sales of ULIP following the new regulations, he said sales was expected to dip in September in the wake of new guidelines. He, however, was optimistic that things would look up soon.
He also said that the regulator would soon come up with guidelines of portability in near future.
On new IPO guidelines, he said, "Presently, the matter is with Securities and Exchange Board of India. The new guidelines will be finalised before middle of next year when some companies are eligible to go public," he said.
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