Irda to meet life insurers today

The Insurance Regulatory & Development Authority (Irda) will meet the heads of life insurance companies tomorrow to discuss the show-cause notices issued by the market regulator, the Securities Exchange Board of India (Sebi), on the sale of unit-linked insurance plans (Ulips).

“A three-day seminar of a sub-group of the International Association of Insurance Supervisors going on in Hyderabad, and the Irda chairman has invited us to join,” one of the chief executive officers attending the seminar said.

Sebi had issued show-cause notices to 13 companies on January 21, including the market leader Life Insurance Corporation of India, on selling Ulips, which comes under collective investment scheme, without an approval.

Though Irda had clarified the products were approved under the Insurance Act and do not violate norms, it was taking legal opinion on the issue. The insurance regulator had asked for a copy of the notice issued to insurers. Insurers are individually going to respond to the notice, but in the absence of a timeframe fomSebi, there is no pressure on them to reply soon.