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Insurance Regulatory and Development Authority of India says insurance companies will witness fall in growth rate this financial year. 

Mr. J Hari Narayanan Chairman of IRDA said almost all insurance companies will witness decline in their growth rate during this financial year while some companies may find negative growth rate during this fiscal year. 

IRDA chairman believes that certain factors which have work against the developments of insurance industry and hence affected the growth of Insurance Industry as well Indian Economy. 

However insurance companies are not agreeing with IRDA chairman. Insurance company said that Irda’s new guideline over Unit Linked Plans which launched is September is the reason for decline of growth rate. 

New norms on ULIP implemented on September, 2010 are responsible for this slow and negative development of Insurance Industry. The companies further said that the cap imposed on charges and the implementation of lock-in five years period for distribution of these charges under ULIP norms had adversely affected the growth of insurance firms across the country. 

Since that there has been strong demand from insurance companies to revised ULIP guidelines. Insurers demanding for more liberalized guidelines over ULIP so the can able to sell more policies. Insurance Regulatory working on new guidelines and might introduced in the month of April. 

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