Buyers of unit-linked insurance plans may soon find it easier to compare features and charges of these products across companies, with life insurers deciding to standardise the product.
At present, insurers use different terminologies and has divergent methods of deducting charges. Often, buyers have complained that this makes the task of selection more complicated for them.
For instance, some insurers keep the mortality charges as a proportion of the sum assured, while others calculate it as a percentage of the premium paid and accordingly deduct the levy. Similarly, some insurers deduct the policy administration charge annually, while certain companies deduct it on a monthly basis.
The council has asked actuaries to look into the issue and submit their report in a month. The idea is to rationalise the nomenclature and have standard five to six charges.