Cos pep up unit-linked insurance schemes

CHENNAI: The tough market conditions for unit-linked insurance plans (ULIPs) may have taken a toll on insurers, but hasn���t discouraged product innovations.

Companies like Tata AIG and ICICI Prudential Life are betting on reviving the ULIP market by offering lower risks and higher return potential. New business premium for private sector players fell more steeply in November and December partially due to the marked slowdown in ULIP sales.

While Tata AIG has launched a ULIP that enables policy holder to enjoy returns based on the highest net asset value (NAV) declared over 100 months, ICICI Pru has designed a return guarantee fund (RGF), which provides guarantee on the customer���s first premium investment by shielding it from equity market volatilities.

Tata AIG���s InvestAssure Apex offers a unique feature called the ���guaranteed maturity unit price��� (GMUP). Company officials say GMUP captures the highest unit price of the ���apex return lock-in��� fund recorded on the 100 reset dates.

Experts say this means that on a pre-decided date in each calendar month, the NAV of the apex return lockin fund will be recorded for 100 months and the highest NAV among the 100 NAVs will be guaranteed to the investor, if the policy remains in force till maturity.

���The product guarantees the upside for the customer. The flexibility encourages participation and the guarantee will provide customers confidence in this volatile market. We expect a very enthusiastic response from customers to this truly innovative solution for its limited period of availability,������ Trevor Bull, MD, Tata AIG, said.