Insurers can show no more than 10% returns

 The Insurance Regulatory and Development Authority (Irda) has capped the minimum illustrative return at six per cent and the maximum at 10 per cent on all marketing illustrations (or publicity material).

 This means that life advisors and sales illustrations can only demonstrate returns within this minimum and maximum benchmarks.

 Earlier promises of returns as much as 16 per cent plus was used by some companies and insurance agents as a marketing gimmick to push sales.

 The implementation of capping the illustrations was to have commenced from tomorrow. However, the Irda has deferred the date of implementation to January 1, 2004 as many insurance companies have yet to get their IT systems in place to commute these illustrations, said official sources at Birla SunLife Insurance Company.

 This was decided at the life insurance council meeting on August 14, as players felt that the August 23 deadline could not be met for want of proper IT systems.

 The illustrative returns will be reviewed every six months based on the movement in interest rates and other investment options.

 Said Birla Sun Life Insurance associate director (business development) Anjana Grewal: