Mumbai, Feb 27: Unit-linked lifeinsurance could be brought under the definition of life insurance business,both in `letter and spirit' so that they do not engage in mutual fundoperations, under the guise of life insurance, the advisory group oninsurance regulation said in its final report.In India, close coordination between the regulators was required for anefficient unit-linked insurance business, the insurance regulation advisorygroup, one of the ten constituted by the standing committee on`International Financial Standards' and codes chaired by Reserve Bank ofIndia Deputy Governor YV Reddy, said in its report. The report submitted tothe standing committee said, regulations in respect to the linked-lifeinsurance business were yet to be developed on a sound basis even at theinternational level.
Referring to estimating the liability under life insurance policies and thecurrent regulations,apropos the valuation of assets, pertaining to policyholders in respect of life insurance were on par with internationalstandards, it said. The advisory group chaired by R Ramakrishnan submittedits second part of the report, dealing with solvency and actuarial issues onFebruary 14, while the first part, which deliberated on licencing of newcompanies in India was submitted on September 23, 2000.
(PTI)
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