Irda fixes Rs 6,000 as fee for exiting Ulips

The Irda (Treatment of Discontinued Linked Insurance Policies) Regulation, 2010, said the charges for discontinuation of Ulips will range from Rs 1,000-Rs 6000, depending upon the premium paid by the policy holder.

When the policy is discontinued during policy years one to four, the policy holders would be charged in this range. However, policies discontinued from the fifth year onwards will not carry discontinuation charges.

The regulator said the fund value of the policy would be credited to the discontinued policy fund and proceeds refunded only after completion of lock-in period.

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