MANU/IRDA/0079/2013
Authority : Insurance Regulatory and Development Authority
Circular No. : IRDA/LIFE/ADVT/CIR/182/09/2013
Date : 10.09.2013
Notification/ Circulars Referred : Circular Ref: IRDA/LIFE/MISC/CIR/154/07/2012 dt. 17th July, 2012 MANU/IRDA/0057/2012
Citing Reference:
Circular Ref: IRDA/LIFE/MISC/CIR/154/07/2012 dt. 17th July, 2012 MANU/IRDA/0057/2012 Referred
To
All the CEOs of Life Insurers,
Re: Advertisements - Life Insurance Products
Attention is invited to Regulation 2 (d) of IRDA (Insurance Advertisements and Disclosures) Regulations, 2000 & Section 41 of Insurance Act, 1938.
A review of the advertisements, especially internet advertisements reveals the necessity to improve the compliance with the spirit of provisions of the above referred Regulations and Act provisions. Another recent trend observed is of advertisements showing the combination of benefits of more than one product.
Therefore, in order to enhance the extant transparency of the Insurance Advertisements, and to improve compliance to the extant Regulations and Act provisions in spirit, the Authority stipulates the following measures to be complied with by all life insurers:
1. Life Insurance Advertisements should not offer, as inducement, any award/reward points, discounts and rebates, except those approved by the Authority as part of product features, either from Insurance Company directly or through arrangement with any third party involving any expense outgo to the Insurer.
2. Where more than one product and combination of their benefits are offered in a single advertisement, there shall be a complete disclosure of all the related particulars of Individual Products, inter alia, a reference to the respective product names and UIN, a caveat advising the prospect to refer the detailed sales literature of the respective individual products, segregated premium particulars of each product.
3. Such advertisements as described in (2) above should contain a specific declaration as "Advertisement Disclaimer" on Top in BOLD [not less than Font size 7].