Customer form must for policies: IRDA

Insurance Regulatory & Development Authority (IRDA) has warned insurers not to issue policies without receiving the proposal form from customers as stipulated in Section 4 of the IRDA Act.

"Any violation of this provision by an insurer shall be viewed seriously by the authority, and action, as deemed fit, taken," said the regulator in a communication to all CEOs of insurance companies.

IRDA said it has received several complaints saying policies were being issued without collecting a proposal form from the customers.

The regulator said: "The number of complaints of policies being issued without the consent of the policyholders, either through tele-marketing or banking channels, especially through credit cards, is on the rise." 

Concerned over the development, the authority has advised all insurers to strictly follow the provisions relating to 'Proposal for insurance' (Section 4.) "Any instance of violation by an insurer shall be viewed seriously and action taken ..," the regulator warned in its communication.