Hyderabad
The insurance regulator IRDAI has come out with a stringent advertisement policy for the entire gamut of the insurance industry and has widened the ambit of “Unfair or misleading advertisement".for the sector.
All insurers have to publish claims paid ratios, as per the instructions issued from time to time, said the IRDAI on Wednesday..
The IRDAI has also asked the insurers to issue a statutory warning, saying "No person shall allow or offer to allow, either directly or indirectly, as an inducement to any person to take out or renew or continue an insurance in respect of any kind of risk relating to lives or property in India, any rebate of the whole or part of the commission payable or any rebate of the premium shown on the policy, nor shall any person taking out or renewing or continuing a policy accept any rebate, except such rebate as may be allowed in accordance with the published prospectus or tables of the insurer."
The names of the product and benefits will be as per the product filing with the IRDAI..
Unfair or misleading advertisement" means and includes any advertisement that:
-fails to clearly identify the product as insurance;makes claims beyond the ability of the policy to deliver or beyond the reasonable expectation of performance; describes benefits that do not match the policy provisions, uses words or phrases in a way which hides or minimizes the costs of the hazard insured against or the risks inherent in the policy, omits to disclose or discloses insufficiently, important exclusions, limitations and conditions of the contract; vi) gives information in a misleading way;
The advertisement also can't illustrates future benefits on assumptions which are not realistic nor realisable in the light of the insurer's current performance;or deviates from the stipulation by the IRDAI through regulatory provisions,
"Unfair or misleading advertisement" will also mean where the benefits are not guaranteed but does not explicitly say so as prominently as the benefits are stated or says so in a manner or form that it could remain unnoticed;
-makes unfair or incomplete comparisons with products which are not comparable or disparages competitors. xi) uses design, content or format which disguise, obscure or diminish the significance of any statement, warning or other matter which an advertisement should contain.
-can't use or denigrate 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. can't use terms or phrases that convey a fabricated sense of security. xiv) where features or benefits prominently displayed are the features or benefits that are applicable under extreme or exceptional scenarios.
In the matter of using rating or ranking or awards in the advertisements,the segment regulator said any claim of rating or award should be based only on those declared by entities which are independent of the insurers and its affiliates. Insurers and its affiliates should neither pay nor procure services from such independent entities so as to get a rating or award..
In case of communications on or through internet or any other electronic media, an insurer,intermediary or insurance intermediary should ensure that the recipients or viewers have the opportunity to view the full text of the relevant key features; relevant terms and conditions; any other applicable risk information and they shall not be hidden away in the body of the text. It can be easily obtained, before any application form is offered. In case of e-mail communications there should be a provision to unsubscribe from the mailing list.
All the insurers will have a compliance officer, whose name and official position in the organisation shall be communicated to the Authority, and who shall be responsible to oversee the advertising programme;
The IRDAI will take action against insurers who violate the new norms.