The problem is that the self regulating agencies are acting in whimsical manner. Insurance policies as well as mutual fund schemes involve pooling of common men's money. There is bound to be some overlapping. while Insurance schemes are regulated by IRDA, SEBI monitors the mutual funds and stock markets. There may be some overlapping. while some mutual funds schemes have insurance schemes like ULI of UTI Mutual Fund, Dhan Raksha of LIC mutual fund, the insurance companies have ULIP which carry features of mutual funds. The more dominant character of scheme- insurance or mutual fund- should be criteria. In all fairness, IRDA monitors insurance and basic character of ULIP of Insurance companies is insurance. Hence, SEBI should not interfere with schemes of Insurance companies.
There must be no room for dispute between different agencies and there must be no ego problem in this context. The Ministry of Finance must interfere to see that such funny situations do not arise.

If the plea of the SEBI is accepted, the result will be chaotic. By this logic, postal life insurance (P.L.I.) of Department of Posts, Army Group Insurance Scheme, Central govt employees Insurance schemes, Deposit Linked insurance scheme all run by Govt. department/ defence should be monitored by IRDA. SEBI should be asked to restrict itself.

Gulshan as you said SEBI should not interfere but if ULIP money is going to invest in equities So They should get the permission from SEBi because The definition says Mutual fund is common man's money and it should have a clear goal of investment but ULIP has no goal they just suggest there client to invest in equities and get signature from clients this is also not a good practice by Insurance companies just to get Good number of policies and to get high amount of premium values

In the competition era, the competition also extended to Life insurance field. Due to this companies are trying to grab the policy holders by showing big amount of returns through ULIP scheme.

If share market is in high, the police holder gets high amount. or otherwise, policy holder will loss.

" Insurgence company not takes any responsibility"

Soubhagya Das- ULIP have characteristics of mutual funds. Yet these are basically insurance policies. It is not feasible to place any company under two regulatory bodies. SEBI and IRDA both cannot control a company. The ministry of finance must immediately intervene.

The Finance Minister has,indeed, intervened by making a statement to maintain status quo on this issue.

When heard the news I just remembered the words I told to an advisor of ICICI some months ago.But I took a policy and am now worried.

Not to worried Abid alreay SEBI has withdraw its ban from ULIP and ULIP is a good investment plat form but I suggest all who want to purchase ULIP.
DOnt go for that.
Suppose you want to Invest in ULIP RS20,000 per year pay rs3,000 for a term insurance and Rest Rs17,000 in different mutual fund which will give you more benefit and more life coverage.
believe its the fact

The Govt. of India and the bodies created by them are really in a very pitiable state. In stead of resolving the issue, the Ministry of finance has directed IRDA and SEBI to maintain status que and refer matter to court.
This is very sorry state of affairs. Just think what will happen if same type of dispute arises in matter of security- internal or external. suppose that dispute arises between Army and Air force. Will Ministry of Defence ask them to maintain status quo and go to court. The government is to take decision. Such reference to court simply invites judicial activism which is against the scheme of constitution that depends on three independent entities- executive, legislature and judiciary.

It is,indeed, a very sorry state of affairs.Out of the 30000 insurances policies some 9000 belong to the ULIP variety.It's almost ten years and now these two bodies are engaged in one of the most unseemly turf wars!