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Home / IRDA Update 

Advertising rules for insurers set by IRDA

The IRDA has coded the advertising rules for the new entrants in the insurance sector. According to the draft, if the advertisement fails to identify the product as an insurance product or makes claims beyond the product's capability to perform, it will be an unfair or a misleading advertisement. Advertisements cannot make unfair comparisons or incomplete transactions which disparage the competitors.

The draft has also laid down the regulations for advertisements on the Internet. Every insurer's site must include disclosure statements regarding the products for their own businesses and for the consumers they serve.

The license numbers of the insurers must be displayed on the website. And the insurance companies must maintain registers which record all the advertisements.

These will be reviewed periodically by an authority for content, context and position of required disclosures along with violation of statutes and regulations. Every insurer is required to maintain a system of control over the content, the form and method of dissemination. This responsibility will be the criteria for which he will be held responsible.

Every insurer will be required to file a statement of compliance with the authority which will provide an identifying number for each advertisement submitted indicating the material's category, number of policies advertised and when the products were advertised.

A third party involvement which would endorse a product or a policy is also required to provide truthful statements and testimonials endorsement to use in the advertisements. 

It should not directly or indirectly convey a recommendation of any member to purchase the product. It must also provide details to the insurance company about its membership and in all its advertisements and brochures that it is a paid-up disclosure.

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