Wednesday, July 22, 2009

IRDA caps ULIP charges

the Insurance Regulatory Development Authority (IRDA) has finalised the cap on charges for ULIP contracts. IRDA has stipulated that charges cannot exceed 300 bps for contracts up to 10 years and 225 bps for contracts of more than 10 years.

The cap is expressed in terms of the difference between the gorss and net yield. This cap will come into effect by 1st October 2009.

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