IRDAI New Rule The Insurance Regulatory and Development Authority of India (IRDAI) has issued guidelines for insurance companies.
According to these guidelines, now insurance companies cannot show Unique Linked Insurance Plans (ULIPs) as investment products in their advertisements. Apart from this, IRDAI has also issued new rules regarding advertising. Let us know in detail in this report.
The Insurance Regulatory and Development Authority of India (IRDAI) today issued new rules for insurance companies. According to this rule, insurance companies can no longer include Unique Linked Insurance Plans (ULIPs) as a product.
IRDA has issued a master circular regarding this. In this circular, IRDA has clearly said that insurance companies should not portray ULIP as an investment in their advertisements.
IRDA issued master circular
Insurance Regulatory and Development Authority of India issued a circular regarding ULIP advertisement. IRDAI issued guidelines (IRDAI New Guidelines) for insurance companies in the circular. IRDAI clearly said that insurance companies must follow these rules.
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According to the circular of IRDAI, now the insurance company cannot show unit linked or index linked product as an investment product. If the company does not follow these rules, then strict action will be taken against it.
what are the new rules
- IRDA said in its guidelines that insurance companies should not use many things in their advertisements. Companies cannot use any service that is not related to insurance in their advertisements.
- The insurance company cannot compare the old interest rates or discounts in the advertisement.
- Apart from this, the company can no longer highlight the benefits of insurance.
- IRDA has said that while giving information about partial benefits, the company should not give information about its limitations and conditions.
- The company can no longer exaggerate the benefits of its product.
- No insurance company can say unfair things about its competitor company.
What are the rules regarding ULIP
IRDAI has said in its guidelines that insurance companies will now have to provide information in simple language about the variable annuity pay-out option of unit linked insurance product, index linked product or annuity product in their advertisements.
Apart from this, the company will also have to provide information about the fluctuations in the returns received on insurance. Old data should not be used in the company’s advertisement.
If the company uses such data in the advertisement, then they will have to use a different font and size for this data. The company will also have to mention the correspondent index in its advertisement.
