On 5 May, the Insurance Regulatory and Development Authority of India (Irdai) issued a circular directing insurers to not delay payments on discontinued Unit-linked insurance plans (Ulips). As per the regulator, insurers were interpreting the rules on discontinuance in a manner that would delay the release of fund value under discontinued unit-linked products, even when the policyholder had opted for complete withdrawal of funds or did not revive the policy during the lock-in period.
Here we explain the rules about discontinuance under Ulips in detail.
