Page 8 - Life Insurance Today December 2017

10. Premium paying period projected is different from a. IRDA (Protection of Policyholders' Interests)
actual Regulations, 2002
The basic framework for policyholder protection is
11. Surrender value projected is different from Actual
contained in these regulations. Procedure to be
12. Free look refund not paid
followed at the 'point of sale', requirements to be
13. Spurious calls or Hoax calls complied with at the proposal stage and disclosures
14. Advice concerning Exclusions/ limitations of cover not to be made in the life insurance policy are clearly
communicated stated in these Regulations. These Regulations contain
a provision for free look cancellation within 15 days
15. Illegitimate inducements offered
of receipt of policy. On availing of the free look
16. Misappropriation of premiums & Malpractices or cancellation, the insured would be entitled to a refund
unfair business practices of the premium paid. In case of ULIPs, the insured
would also be entitled to repurchase the units at the
The number of complaints relating to unfair business price of the units on the date of cancellation.
practices in life insurance business has come down, while
b. The IRDAI (Insurance Advertisements and Disclosure)
the percentage of unfair business practices complaints has Regulations, 2000
increased. Complaints remain more or less close to 50%.
These regulations require the insurers, agents or
The details are provided in the table below:
intermediaries not to issue "unfair or misleading
advertisements." The Master
No. of % increse/ % of No of % of UFBP
Circular Ref: IRDAI/ LIFE/CIR/
Year UFBP decrease Total life UFBP new complaints
complaints compared complaints complaints policies to new MISC/ 147/08/2015 dated 19-
08-2015 issued on Insurance
policies
Advertisements, clearly
2012-13 168462 (+) 63.22 341012 49.41 441,55,298 0.38
prescribes the details to be
2013-14 211622 (+) 25.60 374620 56.49 441,85,973 0.47 made available in the
2014-15 145129 (-) 31.22 278992 52.02 25,869,356 0.56 advertisements, and also
2015-16 103257 (-) 30.92 204701 48.98 26,704,213 0.37 indicates the do's and don'ts
amongst other requirements.
2016-17 62286 (-) 37.87 120847 51.54 26,456,645 0.23
c. IRDAI (Appointment of
Source : integrated Grievance Management System and Business Figures-Life of IRDAI
Insurance Agents) Regula-
Regulatory Framework: tions, 2016

If you are a policy holder of a life or non-life insurance d. IRDAI (Registration of Corporate Agents) Regulations,
product, chances are that your policy needs have not 2015
correctly been met. The agent who so sweetly and subtly
e. IRDA (Insurance brokers) Regulations, 2013
coerced you into signing that policy, has most probably,
unknowingly or otherwise, sold you the wrong product. f. IRDA (Web Aggregators) Regulations, 2013
Mis-selling of policies is going on for a while but has g. IRDAI (Registration of Insurance Marketing Firm)
assumed greater proportions as of late. Regulations, 2015

The basic framework for regulation of insurance business h. Guidelines on Distance Marketing of Insurance
is contained in the Insurance Act, 1938. The IRDA Act, 1999 Products, 2011
established IRDAI as the regulatory authority to enforce With the increasing recourse taken by insurers,
the provisions of the Insurance Act. The following corporate agents and brokers to solicit policies
regulations made by the Authority are aimed at ensuring including lead generation through telecalling, SMS,
that mis-selling does not take place. email, internet, DTH, postal mail and other modes

When a person can no longer laugh at himself, it is time for others to laugh at him.

8 December 2017 Life Insurance Today

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