Irda tightens advertising norms for life insurers

The Insurance Regulatory and Development Authority (Irda) has tightened advertising norms for life insurers asking them not to offer any awards or reward points as inducement to lure customers.

The insurance regulator said that "in order to enhance the extant transparency of the insurance advertisements, and to improve compliance...life insurance advertisements should not offer, as inducement, any award/reward points, discounts and rebates, except those approved by the Authority as part of product features".

Irda said a review of the advertisements - especially Internet advertisements - revealed the necessity to improve the compliance.

The regulator also said it observed a trend of advertisements showing combinations of benefits of more than one product.

It further asked life insurers for a complete disclosure of all related particulars of an individual product where more than one product and combination of its benefits were being offered in a single advertisement.

"Such advertisements should contain a specific declaration as 'Advertisement Disclaimer' on Top in BOLD (not less than Font size 7)," the insurance regulator added.