UTI Mutual Fund today said it will continue selling Unit Linked Insurance Product (ULIP) to its customers even though there is no clarity on the issue of fund houses selling such products. "We have been selling the ULIP plan to the customers of the Balance Fund since 1971 and would continue to do so," said UTI Mutual Fund Chief Marketing Officer Jaideep Bhattacharya.
UTI sells ULIP plan of Life Insurance Corporation which happens to be one of the sponsors of the fund house.
The product has been sold to about 5 lakh customers and has asset size of about Rs 3,100 crore, he said.
It is one of the low cost product available in the market, he said, adding the cost is as low as 3 per cent as compared to up to 62 per cent in the market. In under-insured market like India, Bhattacharya said, there is need for collaboration with insurers to incease the penetration.
However, the Life Insurance Council, which is association of life insurance companies, recently decided against offering insurance covers to fresh unit-linked products sold by mutual funds from October 1. It was decided that insurer will not sell group covers to mutual funds that bundle life insurance with units and thereby create competition for ULIPs.
Regulators including SEBI and IRDA have not come out with the guideline on the issue. Until it is clarified, the confusion would prevail, an industry observer said.
UTI sells ULIP plan of Life Insurance Corporation which happens to be one of the sponsors of the fund house.
The product has been sold to about 5 lakh customers and has asset size of about Rs 3,100 crore, he said.
It is one of the low cost product available in the market, he said, adding the cost is as low as 3 per cent as compared to up to 62 per cent in the market. In under-insured market like India, Bhattacharya said, there is need for collaboration with insurers to incease the penetration.
However, the Life Insurance Council, which is association of life insurance companies, recently decided against offering insurance covers to fresh unit-linked products sold by mutual funds from October 1. It was decided that insurer will not sell group covers to mutual funds that bundle life insurance with units and thereby create competition for ULIPs.
Regulators including SEBI and IRDA have not come out with the guideline on the issue. Until it is clarified, the confusion would prevail, an industry observer said.
Source: http://economictimes.indiatimes.com/Personal_Finance/UTI_MF_to_continue_selling_ULIP/articleshow/3500142.cms
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