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The six member working group, led by Dinesh Pant, appointed actuary of LIC of India, examined the need for index linked products in India and how it will better serve the needs customers in comparison to traditional savings products. The WG, in its report, has stated that ILIP can emerge as a new category of products that fits in between traditional products (where features can appear less transparent) and the unit linked products (ULIP) where transparency is higher but the investment risks are completely borne by the policyholders. Stating that ILIP, in certain forms and shapes, can lead to complexity at the back end, hence the panel decided to recommend different variants of a product structure, starting from the ones which are simple (linked to fixed/G Sec income).

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