IRDA sets conditions for ULIP policy holders
16 May 2007
Hence, the policy holder will not have the option of switching funds, either to equity or debt or withdraw the amount. The decision to continue with the scheme after maturity will purely be the option of the policyholder.
While the permission has been granted for a short period of a week to a fortnight after the maturity of the scheme, no independent fund management activity will be allowed since the product does not give any insurance cover.
Officials stated that the option would enable policyholders, who are not satisfied with the net asset value (NAV) during maturity, to hold on for a better NAV.
Earlier,
policyholders could remain with the scheme for five
years after maturity and were entitled to partial withdrawal
of funds, which have been plugged by the new clarification.
