IRDAI has warned Star Health & Allied Insurance for issuing an advertisement in a newspaper in which it claimed to be the top player in health insurance segment in India.
The advertisement published in the ‘Economic Times’ reads, “Star Health Insurance Ranks No.1 among all Private General and Health Insurance in India in health segment (FY 2014-15).”
IRDAI advertisement norms restrict insurers on use of ratings, ranking and awards. Also, any claim of rating/award should come from an independent agency. Insurers are required to disclose source of such ratings while releasing such advertisements. In addition, insurance companies cannot claim their ranking merely based on premium income, number of policies issued, number of branches, claim settlement history, etc.
In a warning letter sent to Star Health & Allied Insurance, IRDAI said that insurers should not issue advertisements that can mislead potential customers and impact their decision making. “It is to state that issuing any advertisement in violation of the regulatory stipulations will potentially mislead the prospects and any subsequent regrets of the Insurer cannot exonerate from the violations committed,” said IRDAI.