Life insurance sales have jumped in May and June as insurers pushed unit-linked insurance products (Ulips) earmarked for closure. Dozens of unit-linked schemes were closed on June 30 — the deadline set by the Insurance Regulatory and Development Authority (Irda) for discontinuing schemes that did not comply with its new prescriptions, reports Economic Times.

Total sales under individual single premium policies in May was Rs 1,840 crore, 160% more than April's Rs 709 crore. Sales of individual non-single premium policies were up 88% at Rs 1,598 crore, up from Rs 849 crore last month. Sales figures for June are not available, but sources say companies have done well in June too.

Life Insurance Corporation of India (LIC) sold single premium policies worth Rs 1,626 crore in May against Rs 572 crore in April. Its non-single premium policy sales soared 114% to Rs 909 crore. Companies have recorded healthy sales growth of unit-linked plans despite the crash in stock markets in May.

ICICI Prudential sold Rs 24 crore of single premium policies in May, and Rs.208 crore of regular premium policies. Bajaj Allianz sold Rs 125 crore of single premium and Rs 103 crore of regular premium policies.

Irda's decision to give a few months to wind up old plans had given agents room to hard sell existing plans. Although new norms bar sales of non-compliant policies from July 1, policies sold earlier would continue to remain in force. Insurers say policyholders felt that they had limited time to buy an attractive scheme.

This sentiment was fostered by their past experience when they saw high-return policies being wound up. Last year, Irda had come out with guidelines for unit-linked insurance plans. The new guidelines require insurers to provide more protection, disclose more information and also increase the lock-in period for the scheme.

The guidelines were introduced by the regulators over fears that insurers in their quest for top-line growth would push short-term investment products that do not suit long-term needs of policyholders.

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