IRDA relaxes ULIP norms

23 Feb 2007

Chennai: The Insurance Regulatory and Development Authority (IRDA) has revised upwards by 20 per cent the investment cap in money market instruments in respect of unit linked insurance policies (ULIP).

According to the revised guideline, ULIP holders can invest up to 40 per cent of their portfolio in money market instruments. The insurers have to ensure that at no point of time the investment in money market instruments exceed the new limit. They should also revise their sales literature accordingly.