IRDAI notifies regulations on advertising rules for insurance companies
- IRDAI Notifies Regulations On Advertising the regulator wants to be relevant, fair.
- Write in simple language so that customers can make an inform decision.
The (IRDAI) Notifies Regulations On Advertising for insurance companies on advertising policies to safeguard consumer interests.
To ensure that the insurers, intermediaries or insurance intermediaries adopt fair, honest & transparent practices .
While issuing advertisements & avoid practices that tend to impair the confidence of the public via circular issued on 12 April.
The regulator wants the advertisement to be relevant, fair & write in simple language so that customers can make an inform decision.
According to the regulator, if a policy buyer fails to identify the product as insurance in any advertisement.
Describes benefits that do not match the policy provisions, it will be termed unfair or misleading advertisement.
Some of the other reasons for considering an advertisement misleading are:
1. Using words or phrases in a way that may hide or underplay the risks inherent in the policy
2. Not disclosing or disclosing insufficiently important exclusions, limitations and conditions of the policy.
3. Providing information in a misleading way
4. Making unfair comparisons with products that are not comparable disparage competitors
5. Illustrating future benefits on assumptions that are not realistic realizable in the light of the insurer’s current performance deviating.
6. Where the benefits are not guaranteed and not explicitly saying so or saying it in a manner form that it could remain unnoticed.
7. Using design, content or format which disguise, obscure diminish the significance of any statement, warning or other matter which an advertisement should contain.
8. Using terms or phrases that convey a fabricated sense of security.
9. Where features or benefits prominently displayed are the features or benefits that are applicable under extreme or exceptional scenarios.
10. Using names, logos, brand names, distinguishing marks, symbols etc., which may be similar to those already used by others in the market that may lead to confusion in the market place.
Every insurer, intermediary or insurance intermediary will have a compliance officer.
Whose name and official position in the organization will have to be communicated.
The regulator, and who will be responsible to oversee the advertising programmes.
Have to maintain a system of control over the content, form & method of dissemination of all advertisements concerning its policies or products.
In a bid to protect consumers
New advertisement regulations and has invited comments from stakeholders on the exposure draft by November 10.
The objective of the proposed regulation, IRDAI said, is to ensure that the insurers.
Avoid practices that tend to impair the confidence of the public.