Each insurer has to constitute an advertisement committee reporting to the Product Management Committee. The advertisement committee will have at least three members mandatorily from Marketing, Actuarial and Compliance functions of the insurer, said the IRDAI releasing its draft norms on the issue
Hyderabad:
In line with the principle based approach, Insurance regulator IRDAI wants to assign higher responsibility on the senior management of an insurance company while designing and approving the advertisements for the consumption of the customers and has proposed to amend the existing Insurance Regulatory and Development Authority of India (Insurance Advertisements and Disclosure) Regulations, 2021.
Each insurer has to constitute an advertisement committee reporting to the Product Management Committee. The advertisement committee will have at least three members mandatorily from Marketing, Actuarial and Compliance functions of the insurer, said the IRDAI releasing the draft norms on the issue.
All the insurance advertisements have to be submitted to the advertisement committee. The advertisement committee will examine the advertisements and make suitable recommendations to the Product Management Committee.
Product Management Committee will be the final authority either to approve or reject the advertisements, after examining the recommendations of the advertisement committee. Product Management Committee and advertisement committee will be accountable and fully responsible for releasing the approved advertisements.
The insurance regulator has further said Product Management Committee has to ensure:
-a register of all advertisements including the details of filings, approved, rejected and withdrawn,
-a register of all advertisements approved, for the use of insurance agents and insurance intermediaries, including the details of filings, approved, rejected and withdrawn,
-the records for all the advertisements, as per the record retention policy of the insurer or at least three years from the date of withdrawal of the advertisement and shall be made available to the IRDAI as and when called for.
The insurer will upload the advertisement, on their website within three days of releasing the approved advertisements.
Insurers are also advised to set up proper robust systems to upload advertisements on their website within three days of release, said the IRDAI.