The new regulations of IRDA have been introduced. It will deal with the new unit-linked plans.

It has also been informed that some of the life insurance companies have also stared levying fund for the purpose of the charges in switching for new issue of ULIPs under their arm. As per the new regulations, the insurance companies of the country have revised the charge fees and it will vary from Rs 50-250. This will be charged on every switch made by customers.

So the IRDA has squeezed the margins of the life insurance companies. Now it has also been apprehended that now the insurers may cut some of their value added services that they used to provide to their customers.

Star Union Dai-ichi Life Insurance's Mr. I Sambasivarao has informed that the customers of the company now have to pay Rs 100 for each switching between funds.

But earlier, there were almost two to three fund switches that the company used to offer to its clients. Even HDFC Standard Life Insurance has also informed that it is going to charge Rs 250 for each switching of fund on the request of the customer for the same.