The Indian Regulatory Authority (IRDAI) has updated the restrictions on the advertising of insurance policies. The objective is to protect the consumers from any aggressive practices by the insurers. The latter are required to meet certain standards when advertising their insurance products. The climate of trust between insurers and policyholders must be preserved.
The advertisements shall respect the transparency of the terms offered by the insurers:
- covers in conformity with the legislation
- clear exclusions
- calculation of the detailed premium
- reasonable contract costs,...
Any particular reference to the insurer's ranking on the market (turnover achieved, claims settlement rate...) is prohibited. In fact, some of these recommendations were already mentioned in the IRDA's Circular dated August 20, 2015.
Read also | 133 users of two-wheelers die every day in India [4]