The news over the last couple of days has been dominated by a financial product called the Unit Linked Insurance Plan or Ulip. Traditionally the Ulip has been under the regulation of the Insurance Regulatory and Development Authority or Irda. Over the last couple of days however, this regulatory dominance has been challenged by the Securities and Exchange Board of India or Sebi. Sebi contends that the Ulip should come under its own purview. This tussle has now moved from the finance ministry into the courts.
Today we’re going to look at exactly what a Ulip is. We’re going to look at why this tussle came about between Sebi and Irda in the first place, and how this will play out for the average small investor who has or who wants to invest in a Ulip.
We’re going to be talking to Mint’s Consulting Editor Monika Halan, who also edits Mint’s ‘Money’ pages. Monika works in the area of financial literacy and financial intermediation policy and she’s a certified financial planner.