The IRDAI has recently updated the restrictions placed on advertising of insurance policies and the advertising rules that insurers have to follow to safeguard consumer interests. The rules are as follows: Wherever guaranteed returns are offered the conditions attached must be clearly mentioned; Text spelling out the conditions related to guaranteed returns must be at least 50% of the text describing the guarantee; Asset mix of ULIP funds must be disclosed half yearly; Insurers cannot claim to hold a particular rank in the market. The aim of these restrictions is to ensure that customers should not get hoodwinked by aggressive advertising – whether done through television, telephone calls or through the internet – by insurers.
In the updated master circular on insurance advertisements, IRDAI states, “The insurers are expected to adopt fair, honest and transparent practices in the market-place and avoid practices that tend to impair the confidence of the public. As it may be difficult for the public to understand and evaluate the inherent details in the various insurance products, it is of paramount importance that the publicity material is relevant, fair and in simple language enabling informed decision making about whether or not to buy a specific insurance product.”
The original master circular detailing the rules to be followed in insurance advertisements was issued on August 20, 2015. Insurance buyers need to be aware that insurance companies are required to follow certain norms in advertising their policies.
