Page 15 - Life Insurance Today OCTOBER 2017

reputation to IRDAI and other agencies and also financial
loss to the gullible public who pay money based on such
calls in lure of the offers made. Considering the fact that
the mission of Government as well as IRDAI is in promoting
financial inclusion by improving access to insurance related
services in life and non-life segments, such spurious calls
would adversely affect the general sentiment of general
public in relation to insurance.

Given the fact that insurance is a complex financial product
and is a subject matter of solicitation, the trust deficit
caused due to such spurious calls can dissuade those who
are apprehensive but interested in buying insurance
because of the benefits of insurance. Since insurance is a
product of risk protection, this can impact the general risk compliance of these entities with the extant regulatory
coverage of members of public rendering them more framework, IRDAI focuses on the process of soliciting,
vulnerable to risks to their life and property. offering and selling insurance.

The premiums received from insured public forms the Based on the findings, IRDAI initiates regulatory action
corpus for insurance companies to make long term against the insurers or intermediaries as per the provisions
investments in instruments such as Government of the Insurance Act and Regulations. IRDAI on its part has
securities and other securities. The money so invested been proactive in devising and implementing a multi-
serves as the investment for nation building. As a result, pronged strategy for spreading caution so that people do
spurious calls are also indirectly hindering not only growth not fall prey to offers made by spurious callers.
in the insurance sector but also development of the
country through the premium funds available for The realization of the fact that insurance is for risk
development. protection and not for windfall gains can bring about
caution in the members of public. So, there is a need for
Wherever the spurious calling has resulted into issuance greater insurance awareness apart from the specific efforts
of an insurance policy IRDAI takes up the complaint with taken by IRDAI in cautioning public against spurious calls.
the insurer concerned for resolution, which is updated by
the insurer in IGMS. In case the complainant is not satisfied References:
with the resolution provided by the insurer, he may take 1. IRDA Annual Report 2015-16
up the matter with insurance ombudsmen for amicable
2. http://www.policyholder.gov.in/
resolution or adjudication under the Redressal of Public Public_Notice___Spurious_Calls_262.aspx?NEWS
Grievance Rules, 1998. Alternately, the complainant can
3. https://www.lifeinscouncil.org/code/Default.aspx
file a complaint with Consumer Forum for deficiency of
4. http://timesofindia.indiatimes.com/business/india-
service, or take up before a criminal court for cheating or
business/IRDAI-plans-data-security-standards/
fraud, or file a suit in a civil court for breach of trust.
articleshow/55424006.cms
5. https://www.irda.gov.in/ADMINCMS/cms/
IRDAI monitors the market conduct of insurers, agents and
frmGeneral_Layout.aspx?page=PageNo23
intermediaries. Further, during the course of on site
inspection and off site monitoring of regulated entities like 6. www.hdfchealth.com/irda-public-notice-on-spurious-
insurance companies, insurance agents, corporate agents calls.aspx
and insurance intermediaries (brokers) for examining the 7. Newspapers & Journals

The third-rate mind is only happy when it is thinking with the majority. The second-rate mind is only happy when it is thinking with
the minority. The first-rate mind is only happy when it is thinking.

Life Insurance Today October 2017 15

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