Also asks insurers to ensure that advertisement leaflets used by agents/intermediaries are in compliance with the new guidelines.
The insurance regulator has cautioned insurance companies against luring customers by offering hefty reward points or discounts through their commercial advertisements.
After reviewing various advertisements of insurance companies, IRDA has observed that their advertisements especially those aired through online platform are showing ‘combination of benefits’ of more than one product. The regulator said that this review has revealed the necessity of improving the compliance with the spirit of provisions in order to enhance the transparency of the insurance advertisements.
Like mutual funds advertisements, IRDA has mandated the following disclaimer to be displayed on top in bold. “This advertisement is designed for combination of Benefits of two or more individual and separate products named (1)------- (2)------ (3) ---- (as applicable) etc. The Customer has the choice of purchasing any one or more products as per his/her need and choice and there is no compulsion whatsoever that these products are to be taken together as suggested by the Insurer and presented in this advertisement. The customer is expected to ask questions, understand and satisfy himself that the combination meets his/her specific needs better before deciding to purchase the combination. This Benefit Illustration is the arithmetic combination and chronological listing of combined benefits of individual products. The customer is advised to refer the detailed sales brochure of respective individual products mentioned herein.”
Also, the insurance regulator has asked the insurance companies to ensure that the advertisement used by insurance agents or intermediaries should be in compliance with the given guidelines.