Market regulator Insurance Regulatory and Development Authority revised its advertisement guidelines for life insurance products by making it more stringent. It said that, advertisement, especially internet advertisement, necessitated the improvement in compliance.
The new guideline said that “in order to improve the transparency of the insurance advertisement and improve its compliance, life insurance advertisements should not offer, as stimulus, any reward or award points, discounts and rebates, other than those approved by IRDA as a integral part of the product.
The advertisement being displayed should contain a specific declaration as Advertisement Disclaimer at top and in bold characters. Further, the font size should be 7 or more.
In addition to the above, advertisement review by IRDA shows that there is a trend of advertisement showing the combination of benefits of multiple products. In such circumstances, as per revised guidelines, insurance companies should make the disclosure of all related details of individual products, in cases where single advertisement is being displayed for multiple products.
