{"id":105604,"date":"2016-09-03T23:04:07","date_gmt":"2016-09-03T23:04:07","guid":{"rendered":"http:\/\/151.106.38.4\/2016\/09\/03\/irdai-extends-revival-option-for-ulips\/"},"modified":"2016-09-03T23:04:07","modified_gmt":"2016-09-03T23:04:07","slug":"irdai-extends-revival-option-for-ulips","status":"publish","type":"post","link":"https:\/\/nagalandpost.net\/index.php\/2016\/09\/03\/irdai-extends-revival-option-for-ulips\/","title":{"rendered":"IRDAI extends revival option for ULIPs"},"content":{"rendered":"<p><img src=\/old_site\/><\/p>\n<div>In a welcome move the IRDAI, has now said that policyholders will be able to revive unit-linked insurance plans (ULIPs) even two years after the policy has lapsed.<\/div>\n<div>The earlier regulation insisted on payment within 90-days, following which the ULIP would lapse.&nbsp;<\/div>\n<div>The new regulation makes ULIPs on par with traditional plans, which have always enjoyed a two-year grace period for payment.&nbsp;<\/div>\n<div>Lapsed policies are a huge cost and concern for both insurers and policyholders. For 2014-15, LIC had set aside as reserve for lapsed ULIPs unlikely to be revived at 8,221.44 crore.&nbsp;<\/div>\n<div>Private insurers like Max Life and ICICI Prudential had set aside amounts of 78.24 crore and 17.74 crore respectively.<\/div>\n<div>\u201cIt\u2019s a welcome move as it\u2019s in the customers interest. The insurance industry has suggested to get this change for quite some time, which regulator has now accepted. However, some clarification is required on treatment of funds post lockin as there is no discontinued fund (DF) concept post lockin even in 2013 regulations,\u201d said V Vishwanand, senior director and chief operations officer, Max life Insurance.<\/div>\n<div>Earlier, policyholders taking a one-month long summer vacation or a sabbatical could find that their policy had lapsed in their absence from routine life. During the first five years of a policy\u2019s life, when there is a lapse the policyholder\u2019s money goes into an discontinued fund . Insurance companies normally do not actively manage this fund, so when the person gets a return the fund management (insurer\u2019s) charges are low.<\/div>\n<div>When it comes to policies lapsing after a five-year period, the fund value was given back to the policyholder and the policy was closed. \u201cIn many cases, we found that 90 days was not sufficient period for the insurer or the policyholder. At our end, we first need to communicate with the policyholder and if the policyholder is out of reach in that short time frame, the policy would lapse \u2014 to the mutual disadvantage of both the insurance company and its customers. But now with a two-year grace period, there will be more than enough time for reminders for our end and for efforts to pay from theirs,\u201d says an executive with a life insurer.<\/div>\n<div>The average tenure of most ULIP plans are 10-20 years. IRDAI has mandated that ULIPs should run a minimum tenure of 10 years.<\/div>\n<div>\n<\/div>\n<div>\n<\/div>\n","protected":false},"excerpt":{"rendered":"<p>In a welcome move the IRDAI, has now said that policyholders will be able to revive unit-linked insurance plans (ULIPs) even two years after the policy has lapsed. The earlier regulation insisted on payment within 90-days, following which the ULIP would lapse.&nbsp; The new regulation makes ULIPs on par with traditional plans, which have always [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[],"tags":[],"class_list":["post-105604","post","type-post","status-publish","format-standard"],"_links":{"self":[{"href":"https:\/\/nagalandpost.net\/index.php\/wp-json\/wp\/v2\/posts\/105604","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/nagalandpost.net\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/nagalandpost.net\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/nagalandpost.net\/index.php\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/nagalandpost.net\/index.php\/wp-json\/wp\/v2\/comments?post=105604"}],"version-history":[{"count":0,"href":"https:\/\/nagalandpost.net\/index.php\/wp-json\/wp\/v2\/posts\/105604\/revisions"}],"wp:attachment":[{"href":"https:\/\/nagalandpost.net\/index.php\/wp-json\/wp\/v2\/media?parent=105604"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/nagalandpost.net\/index.php\/wp-json\/wp\/v2\/categories?post=105604"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/nagalandpost.net\/index.php\/wp-json\/wp\/v2\/tags?post=105604"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}