Page 41 - Life Insurance Today OCTOBER 2017

Insurance Regulatory

and Development

News
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Authority of India NewsNews

Publishing of Death Claims data / Death Claims paid
Life Insurers asked to
ratios in “Insurance Advertisements”
maintain transparency in
It has been observed that insurers are following different methods to arrive at
publishing death claims Death Claims paid data (i.e. Death Claims paid ratios), while publishing them in
paid “Insurance Advertisements” [as defined in IRDA (Insurance Advertisements and
Disclosure) Regulation, 2000]. In order to have uniformity across the industry,
IRDA has directed the Life Insurers,
via a circular to follow transparency instructions are hereby given to the life insurers to use/publish only “Annual
Figures” of Death Claims paid ratios, based on the number of policies alone.
in projecting death claim settlement
in advertisements. The circular men- These figures shall reflect the entire financial year and shall be based upon:
tions, "It has been observed that in- Y Latest IRDAI Annual Report (or)
surers are following different meth- Y Latest Annual Audited final figures submitted to the Authority
ods to arrive at death claims paid
If an Insurance Advertisement contains Death Claims paid ratio, then the data
data (death claims paid ratios), for individual and group polices shall not be clubbed together. The Insurance
while publishing them in insurance Advertisements for group products shall reflect only group Death Claims paid
advertisements. ratio and individual products shall reflect only individual Death Claims paid ra-
In order to have uniformity across the tio. In case of advertisements’ promoting the Company’s brand without refer-
industry, the life insurers should use ence to products, only individual death claims paid ratio be used.
or publish only annual figures of death The method of calculation for arrival of Death Claims paid ratios for a financial
claims paid ratios, based on the num- year shall be as followed for reporting in statements 6 & 7 of IRDAI Annual
ber of policies alone." If an insurance Report of 2015-16.
advertisement contains death claims Further, no other information related to death claim payments, other than what
paid, then the data for individual and
is specified above shall be used as part of any Insurance Advertisement/s. The pro-
group polices shall not be clubbed to-
visions of this circular come in to immediate effect.
gether. The advertisements for group
products should reflect only group Chief General Manager (Life)
death claims paid, while individual
products should reflect only individual Customer's consent mandatory for Aadhaar based e-KYC
death claims paid. IRDAI in a circular that the use of Aadhar and accessing of personal informa-
tion of Unique Identity Authority of India (UIDAI) for e-
For advertisements promoting the
Know Your Customer (e-KYC) purposes can only be done
company's brand without reference to only on the voluntary consent of customer.
products, only individual death claims
"The information downloaded from UIDAI shall be con-
paid should be used. According to
sidered as sufficient information for the purpose of KYC
IRDAI's data, in 2015-16, life insurance
companies had settled 8.54 lakh verification,'' the authority said. In case material differ-
claims on individual policies with a ence is observed either in the name or the photograph in Aadhaar is not clear,
total payout of Rs. 12,636.66 crores. the insurer should carry out additional due diligence and maintain a record of
the additional documents sought.
Life Insurance Today October 2017 41

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