Tuesday, March 12, 2013

ONLINE SALE OF INSURANCE POLICIES AND IRDA GUIDELINES



IRDA has put in place a regulatory framework for enhancing the transparency and improving the informed choice amongst all classes of policyholders during the course of solicitation of insurance business and all Insurers are required to comply with the IRDA (Protection of policyholders’ interests) Regulations, 2002. The online sale of insurance policies should also comply with IRDA Guidelines on Distance Marketing of Insurance Products. All other extant regulatory framework are equally applicable to online sale of insurance policies.

52 Complaints have been registered in IRDA’s Integrated Grievance Management System (IGMS) with regard to alleged mis-selling in online sale of insurance policies. Out of that, 50 complaints have been resolved by the Insurers and 2 complaints are pending.

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