Don’t advertise ‘Ulips’ as investments: Irdai

WhatsApp Group Join Now
Telegram Group Join Now

Don't advertise 'Ulips' as investments Irdai

👇👇👇Change Language

IRDAI has issued new guidelines:

1. Banning the promotion of ULIPs and index-linked plans as investments.
2. Setting rules for advertising past fund performance.
3. Requiring transparency and fairness in insurance advertisements.
4. Ensuring policyholders are fully informed about compliance with regulations.


The insurance regulator has prohibited the promotion of Unit Linked Insurance Plans (Ulips) and index-linked plans as investment products. According to a circular from the Irdai, advertisements mentioning past fund performance must adhere to strict guidelines. They should display compounded annual returns over the last five calendar years, accompanied by a disclaimer stating that past performance does not guarantee future results.

If relevant, advertisements must also disclose benchmark index performance alongside fund performance data. The circular emphasizes that advertisements should not exaggerate benefits, selectively disclose benefits without mentioning limitations, or make negative comparisons against competitors or the industry.

To ensure compliance, insurers must establish an advertisement committee as per regulations and appoint compliance officers within distribution channels. These entities are responsible for maintaining stringent controls over advertisement content and ensuring adherence to approved policies.

Additionally, the regulator has mandated that companies offer policyholders the option to make online premium payments and appoint a new agent or direct sales staff if the original agent who sold the policy departs. Renewal commissions may now be paid to the new agent. Furthermore, insurers are permitted to accept a new policy from the assigned insurance agent or direct sales staff for the same policyholder if the original policy is not renewed or surrendered within six months.

WhatsApp Group Join Now
Telegram Group Join Now

Leave a Comment

Your email address will not be published. Required fields are marked *

Scroll to Top