Individual agents and intermediaries like brokers can no longer use recognition like Million Dollar Round Table (MDRT) to promote their business.
In the latest guidelines, IRDAI has barred insurance agents and intermediaries from promoting their business by claiming awards and recognition received in lieu of criteria like premium income and no. of policies sold.
However, IRDAI has allowed insurers and intermediaries to promote awards and recognition given by independent agencies, which do not have direct interests in insurance business. Insurers and intermediaries cannot pay or procure any service from these independent agencies to get a rating or award. Source and credibility has to be disclosed in legible fonts if they use such an award/recognition in their advertisements.
In addition, such a recognition can be used till 12 months of receiving awards or till the next edition of award is announced by the same entity.
Now let us look at what is allowed for individual agents:
- Agents will have to use advertisement material provided to them by insurers
- There is no need to take written approval from insurers to use advertisement materials
- Agents are allowed to advertise their name, logo, address and phone number
- Agents can also mention their qualification, experience and details of services offered
- Agents can publish claim paid ratios i.e. claim requests settled divided by claim requests received
What’s not allowed:
- Agents cannot make any reference to policies, benefits, costs or insurers in their own advertisements
- Agents cannot claim ranking given to them by insurer based on business procured
What would happen if agents do not follow these guidelines:
- Agents can get show cause notice from IRDAI seeking their reply within 10 days of issue of such a letter
- The insurance regulator can direct agents to modify advertisement to comply with the regulations or discontinue advertisement
- Strict action can be taken against agents who do not comply with the regulations
- The regulator can also levy penalty for such a non-compliance
Disclosure on website
Agents have to give disclosure statements outlining policies offered and privacy of personal information
Agents will have to disclose their agency license number prominently on their website
