Page 11 - Life Insurance Today April 2018

6. “Cover” means an insurance contract whether in the 5. Board Approved Policy for Protection of
form of a policy or a cover note or a Certificate of Interests of Policyholders:
Insurance or any other form as approved by the
Authority to evidence the existence of an insurance 1. Every insurer shall have in place a board approved
contract; policy for protection of policyholders’ interests which
shall at the minimum, include
7. “Distribution Channels” means persons and entities (i) steps to be taken for enhancing Insurance
authorised by the Authority to involve in sale and Awareness so as to educate prospects and
service of insurance products;
policyholders about insurance products,
8. “Proposal form” means a form to be filled in by the benefits and their rights and responsibilities.
prospect in written or electronic or any other format
as approved by the Authority, for furnishing all (ii) service parameters including turnaround times
material information as required by the insurer in for various services rendered.
respect of a risk, in order to enable the insurer to take (iii) procedure for expeditious resolution of
informed decision in the context of underwriting the complaints
risk, and in the event of acceptance of the risk, to (iv) steps to be taken to prevent mis-selling and
determine the rates, advantages, terms and unfair business practices at point of sale and
conditions of the cover to be granted; service.

Explanation: “Material Information” for the purpose (v) steps to be taken to ensure that during policy
of these regulations shall mean all important, solicitation and sale stages, the prospects are
essential and relevant information sought by insurer fully informed and made aware of the benefits
in the proposal form and other connected documents of the product being sold vis-a-vis the product
to enable him to take informed decision in the context features attached thereto and the terms and
of underwriting the risk;
conditions of the product so that the benefits /
9. "Prospect” means any person who is a potential returns of the product are not mis-stated / mis-
customer of an insurer and likely to enter into an represented.
insurance contract either directly with the insurer or 2. Every insurer shall display the service parameters and
through a distribution channel;
turnaround times as approved by the Board in its
10. “Prospectus”: means a document either in physical or website and keep the same updated as and when the
electronic or any other format issued by the insurer service parameters are revised by the Board.
to sell or promote the insurance products;
Explanation: Insurance products referred herein shall 6. Point of Sale:
also include the riders offered, if any. Where a rider 1. A prospectus of any insurance product shall clearly
is tied to a base policy all the terms and conditions state
of the rider referred in the definition shall be (i) (a) the Unique Identification Number (UIN)
mentioned in the prospectus. Where a standalone allotted by the Authority for the
rider is offered to a base product, a reference to the concerned insurance product
rider shall be made in the prospectus of the base
policy indicating the nature of benefits flowing (b) the scope of benefits;
thereupon. (c) the extent of insurance cover;
11. Words and expressions used and not defined in these (d) warranties, exclusions/exceptions and
regulations, but defined in the Act, or the Insurance conditions of the insurance cover along
Regulatory and Development Authority Act, 1999 (41 with explanations.
of 1999) or the Insurance Rules, 1939 or any other (ii) (a) a description of the contingency or
regulations issued by the Authority shall have the
contingencies to be covered by insurance;
meanings respectively assigned to them in those Acts
or Rules or Regulations. (b) the class or classes of lives or property

Grounding airplanes to cover your butt would never have let Orville or Wilbur change the world. We would still be spending weeks to
cross the Atlantic to do business in London.

Life Insurance Today April 2018 11