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IRDAI Panel suggests Introduction of ILIP

Published on February 11, 2021
Current Context: The panel constituted by the Insurance Regulatory and Development Authority of India (IRDAI) has provided a recommendation to introduce Index-Linked Insurance Policies (ILIP).
IRDAI Panel suggests Introduction of ILIP
  • The committee for the same was headed by Dinesh Pant.
  • The working group committee examined the need for ILIP in India.
  • Thus after the introduction of ILIP, a new product will be added to the other two insurance categories namely, Unit Linked Insurance Plan (ULIP) and Traditional Plans.
  • The returns from ILIP will be linked to benchmark indices.
  • ILIP plan will be suggested as a pension plan product.
  • It will be a complementary or an alternative option to the conventional guaranteed products which are currently available like annuities, saving products or ULIPs.
  • Static Part: 
    • About ILIP: It provides a lock-in period of 5 years. The ILIPs are the life insurance policies as mentioned under Section 10(10D) and taxability of the Insurance Policy Act
    • HQ of IRDAI: Hyderabad, Telangana
    • Chairman of IRDAI: Subhash Chandra Khuntia

Question: 

Q.1 Which organisation has provided the recommendation to introduce Index-Linked Insurance Policies (ILIP)?
a. SEBI
b. PFRDA
c. RBI
d. IRDAI
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