Title: Mis-selling of ULIPs - causes and regulatory approach towards unethical practices of mis-selling of ULIPs

Authors: Amarjeet Kaur; Anand Bansal

Addresses: Punjabi University Campus, Maur, Bathinda, India ' Department of Commerce, GKC-Punjabi University Guru Kashi Campus, Talwandi Sabo, Bathinda, India

Abstract: The insurance sector is one of the booming sectors of India, as this sector along with the banking sector contributes 7% (approx.) to gross domestic product (GDP) of India. With the opening up of the insurance sector, innovative insurance products have been introduced by insurers in order to cater the needs of various segments of society. Innovations in insurance products have benefited the customers as insurance companies are competing against each other by introducing insurance policies with improved features. Invention and introduction of unit linked insurance policies (ULIPs) is one of the commendable achievements of the Indian insurance industry. But at the same time mis-selling of ULIPs has become a serious concern for customers, regulatory authorities and the government. This paper highlights the causes of mis-selling of ULIPs, scenario pre and post revised guidelines regarding ULIPs by the Insurance Regulatory and Development Authority (IRDA) in September 2010 and suggests measures to eradicate mis-selling. The study is descriptive in nature and it is based on secondary data.

Keywords: ULIP mis-selling; unit linked insurance policies; ULIPs; Insurance Regulatory and Development Authority; IRDA; ethics; insurance industry; India; life insurance.

DOI: 10.1504/IJICBM.2016.074478

International Journal of Indian Culture and Business Management, 2016 Vol.12 No.2, pp.141 - 154

Received: 18 Dec 2014
Accepted: 22 Jan 2015

Published online: 31 Jan 2016 *

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