With the uncertainty cloud residing over Ulips – unit-linked insurance plans, Life Insurers are launching in the traditional products like endowment plans and money back savings and protection plans.
Sebi has a standing order that any insurance product which has an investment component needs to get approved by it before its launch.
| Insurer | Product Name | Plan Type |
| Bajaj Allianz Life Insurance | Invest Plus Premier offers Guaranteed investment return | Traditional |
| Birla Sun Life Insurance | Bachat (Endowment) Plan | Endowment |
| DLF Pramerica Life Insurance | DLF Pramerica Dhan Suraksha | Savings-cum-protection |
Akshay Mehrotra, marketing head of Bajaj Allianz Life Insurance said that theirs is a conscious move to balance the portfolio to a better mix of traditional products. This move was to reduce the dependency on single line of products (namely Ulips). Logistics say that in 2005-06, 6% of its total portfolio was from traditional products and 94% from Ulips; in 2008-09, the share of traditional products increased to 7% and in 2009-10 the share is 16%.
He even added that market demanded easy-to-understand and easy-to-buy life insurance policy which is promised by their Invest Plus Premier.
Others say that the launch of traditional products cannot be linked to the controversy as these were filed with the Insurance Regulatory and Development Authority of India long before the turf war erupted.
“Normally, once a product is filed with Irda, it takes two months or 60 days to get approval. If from June or July you see a flurry of traditional products, then you can say it is linked,” said an unnamed source.
This should not be in any way construed that the launch of traditional products was a conscious decision to overcome the Sebi order on new Ulips. To quote S B Mathur, secretary general of Life Insurance Council; “What is the problem? Sebi has never had problem with traditional products.”
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