Page 9 - Life Insurance Today December 2017

which do not involve communication in person as well These changes will enable the interests of consumers to
as requests from clients seeking information and sale be better served through provisions like those enabling
of insurance products in distance mode, IRDAI issued penalties on intermediaries / insurance companies for
Distance Marketing Guidelines. misconduct and disallowing multilevel marketing of
i. IRDA (Non-Linked Insurance Products) Regulations, insurance products in order to curtail the practice of mis-
selling.
2013
j. IRDA (Linked Insurance Products)Regulations, 2013
k. Grievance Redressal Guidelines for Insurance Sector
2010
IRDAI has also provided channels for customers to
raise grievances with insurers in the form of Integrated
Grievance Management System, IRDA Grievance Call
Centre and postal, fax and email channels. If not
satisfied can take up with the Insurance Ombudsman
or approach Consumer Fora or Courts.

l. Corporate Governance Guidelines - Policyholder
Protection Committee
With a view to addressing the various compliance issues
relating to protection of the interests of policyholders,
each insurer has been directed to set up a Policyholder
Protection Committee which directly report to the
Board. The responsibilities of the Committee are to
address complaints and grievances of policyholders
including mis-selling by intermediaries.

Insurance Laws (Amendment) Act, 2015
The amendments to the Insurance Act, 1938 have been
made through the enactment of Insurance Laws
(Amendment) Act, 2015. In terms of section 42 (A)(2) of
the insurance act 1938, no person shall allow or offer to
allow, either directly or indirectly, as an inducement to any
person to take out or renew or continue an insurance
policy through multilevel marketing scheme.

Further, section 42 (A)(3) of the insurance act 1938
prescribes that the Authority may through an officer
authorised in this behalf, make a complaint to the
appropriate police authorities against the entity or persons
involved in the multilevel marketing scheme. This
Amendment Act vide section 42(5) of the insurance act
1938 also prescribes that the insurers shall be responsible
for all the acts and omissions of its agents including
violation of code of conduct and liable to a penalty which
may extend to one crore rupees.

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Life Insurance Today December 2017 9

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