In order to curb mis-selling by insurance intermediaries such as agents, banks and brokers and insurance policies, IRDAI has asked insurance companies to share details of complaints against their top ten intermediaries and top 10 insurance policies.
IRDAI feels that that conduct of intermediaries and design of insurance products are the key reasons for mis-selling. In a circular, it said, “Unfair business practices complaints affects the sentiment of the insurance sector. After analysing various measures put in place by insurers in addressing mis-selling, we have observed that the market conduct of intermediaries and design of insurance products play a major role in reducing complaints.”
The insurance regulator has asked insurance companies to share such details within 10th day of the end of each quarter.
The insurance regulator has asked details such as name of intermediary, specification on distributor type such as agent, bank or broker, total number of complaints received, no. of mis-selling complaints, no. of policies sold, premium received, commission paid and action taken on the intermediary. Insurance companies will have to update IRDAI if they have given resolution in favour of complainant, partially in favour of complainant and rejected.
On mis-selling of insurance products, IRDAI has sought details such as name of policy, total no of complaints, no. of mis-selling complaints, status on complaints and no. of such policies sold.