ULIP insurance policies safe, says IRDA on Sebi's ban order

Insurance regulator IRDA today said that ULIP policies, under which a portion of funds is invested in the stock markets, are "safe and secure".

Policy holders of the Unit Linked Insurance Products (ULIPs) offered by different insurance companies are assured that these policies are safe and secure", said IRDA chairman J Hari Narayan in a release that followed market regulator Sebi banning such schemes of select companies last night.

He further said that IRDA will take up the matter "expeditiously in the appropriate forum in accordance with the law."

Securities and Exchange Board of India (Sebi) in an order issued on Friday evening banned 14 life insurance companies, including those belonging to Tatas, SBI, ICICI, HDFC and Reliance Anil Ambani group from raising funds through unit linked schemes.