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IRDA approves all life insurance products before being offered for sale

Insurance Regulatory and Development Authority (IRDA) has informed that all life insurance products are approved by the authority before being offered for sale by the insurance companies directly or through intermediaries. IRDA has also informed that it also clears the sale literature at the product approval stage. Focus is laid on making the sales literature relevant, fair and transparent to enable an informed decision by the purchaser of an insurance policy. IRDA has also issued guidelines mandating that “all insurance advertisements are comprehensible in light of the complexity of the product being sold

Insurance Policies

Insurance Regulatory and Development Authority (IRDA) has informed that all life insurance products are approved by the authority before being offered for sale by the insurance companies directly or through intermediaries. IRDA has also informed that it also clears the sale literature at the product approval stage. Focus is laid on making the sales literature relevant, fair and transparent to enable an informed decision by the purchaser of an insurance policy. IRDA has also issued guidelines mandating that “all insurance advertisements are comprehensible in light of the complexity of the product being sold”. In addition to that IRDA through its “Bima Bemisal” multi media campaign is spreading awareness among the public on relevance and importance of insurance, policy holders’ right and responsibilities.

The sales literature cleared by the IRDA at the product approval stage contains benefit illustration of 6 per cent and 10 per cent. Sales literature is released by insurance companies and the agents are required to use only approved sales literature for promotion of insurance products

When complaints on usage of unapproved sales literature or literature not being compliant to advertisement regulations are received, directions are issued for withdrawal of such advertisements apart from initiating action against such offenders.

This information was given by the Minister of State for Finance, Shri Namo Narain Meena in written reply to a question in Lok Sabha today.

Categories: Corporate Law
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