Insurance Regulatory and Development Authority (IRDA) told insurance companies to ignore the SEBI order and continue the business as usual. IRDA mentioned that insurance companies can continue the marketing and services of ULIPs according to Insurance Act 1938 regulations and also gave assurance to policy holders that ULIPs are safe and secure. Also said that it will react quickly to the SEBI’s orders in accordance to law. Insurance industry experts expect that if this ban continues, it effect the renewal of the policies which are existing and also that there will be a huge financial loss for the insurance companies. According to IRDA, 16.7 lakh ULIPs have been sold with a premium of Rs.44,611 crore during April 2009 to February 2010. Later the two regulators had the discussions on the ULIP products to resolve the confusion and also to make smooth functioning in the market. SEBI clarified that old policies issued before 9th April can be continued for collecting premiums and should not issue any new ULIPs without SEBI registration after 9th April. The two regulators have decided to approach the court to resolve the control on ULIPs.
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