 "Life insurers must disclose invesment return details in ads: IRDAI")
Insurance sector regulator IRDAI has directed life insurers in the country to mandatorily detail guaranteed and non-guaranteed benefits on investments in their advertisements.
As per Insurance Regulatory and Development Authority of India (IRDAI) norms, it is mandated that all insurance products should provide the prospective policyholder a customised benefit illustration, depicting the guaranteed and non-guaranteed benefits at gross investment returns of 4% and 8% respectively.
"However, it is observed that some of the advertisements containing illustrations being released in the market are not in tune with the spirit of the above regulations and hence fail to enable the prospects to compare both scenarios; so as to give better appreciation of possible benefit depending on the yield," IRDAI said in an order today.
Hence it is advised that wherever the illustration is given in advertisements, it must be with both the scenarios with investment returns of 4% and 8% with equal prominence in font size, at the same place and in the same page, it added.
IRDAI said the order will come to effect from December 1.
As per Insurance Regulatory and Development Authority of India (IRDAI) norms, it is mandated that all insurance products should provide the prospective policyholder a customised benefit illustration, depicting the guaranteed and non-guaranteed benefits at gross investment returns of 4% and 8% respectively.
"However, it is observed that some of the advertisements containing illustrations being released in the market are not in tune with the spirit of the above regulations and hence fail to enable the prospects to compare both scenarios; so as to give better appreciation of possible benefit depending on the yield," IRDAI said in an order today.
Hence it is advised that wherever the illustration is given in advertisements, it must be with both the scenarios with investment returns of 4% and 8% with equal prominence in font size, at the same place and in the same page, it added.
IRDAI said the order will come to effect from December 1.
You’ve reached your limit of {{free_limit}} free articles this month.
Subscribe now for unlimited access.
Already subscribed? Log in
Subscribe to read the full story →*Subscribe to Business Standard digital and get complimentary access to The New York Times
Smart Quarterly
₹900
3 Months
₹300/Month
SAVE 25%
Smart Essential
₹2,700
1 Year
₹225/Month
SAVE 46%
*Complimentary New York Times access for the 2nd year will be given after 12 months
Super Saver
₹3,900
2 Years
₹162/Month
Subscribe
Renews automatically, cancel anytime
Here’s what’s included in our digital subscription plans
Exclusive premium stories online
Over 30 premium stories daily, handpicked by our editors
Complimentary Access to The New York Times
News, Games, Cooking, Audio, Wirecutter & The Athletic
Business Standard Epaper
Digital replica of our daily newspaper — with options to read, save, and share
Curated Newsletters
Insights on markets, finance, politics, tech, and more delivered to your inbox
Market Analysis & Investment Insights
In-depth market analysis & insights with access to The Smart Investor
Archives
Repository of articles and publications dating back to 1997
Ad-free Reading
Uninterrupted reading experience with no advertisements
Seamless Access Across All Devices
Access Business Standard across devices — mobile, tablet, or PC, via web or app
SAVE 25%