On 23rd May, the Insurance Regulatory and Development Authority (IRDA) will issue guidelines on the non-unit linked insurance products in a month.
The guidelines are expected to end the two year impasse between the regulator and the industry. IRDA chairman J Harinarayan said, the new guidelines on non-unit linked insurance products would be similar to the ULIPs (unit-linked insurance plans) guidelines brought out in September, 2010.
According to Mr Harinarayan, new guidelines will bring in clarity to the products other than ULIPs. The regulator has already circulated a draft within the industry inviting comments on it and would issue guidelines after considering the suggestions.
The major disappointments for the industry might come on two fronts — the highest NAV guarantee and the pension products. Mr Harinarayan said that highest NAV (net asset value) guarantee is a dangerous product and is prone to be mis-sold.