In an effort to curb mis-selling, IRDAI has tightened its advertisement guidelines.
The insurance regulator has issued a notification in which it has mandated that every insurance advertisement will have to give name and basic details of the insurance company and the insurance agent.
By making an amendment in Insurance Advertisement and Disclosure Regulation, IRDAI has stated, “Every advertisement for insurance shall state the full registered name of the insurer/intermediary/insurance agent.”
Typically, print and web advertisements highlight a few key points of the policy like ‘insure your family with only Rs.5 per day’ and ‘get life cover Rs.1 crore cover at Rs.15 per day’ to entice people. IRDAI has mandated to give details of issuer - insurance company and agent who market policies through such advertisements.
The guidelines come into force with immediate effect.