Page 63 - MODULE1_Insurance Introduction_CHA
P. 63
Group policies can be issued for the above groups. Group
policies could be group life insurance policies, group health
policies or group non-life policies. However, the group should
not be formed solely for the purpose of obtaining group
insurance policy.
10. How is Insurance bought / sold?
‘Insurance is a subject matter of solicitation’, this phrase,
which is found in all insurance advertisements across; in India
it was mandated by IRDA, and it means basically that:
“insurance is the product that is being sold by this
advertisement and not anything else.” “Solicitation” in
insurance means an insurer or an intermediary approaching a
client with a view to convince the client to purchase their
insurance policy.
It’s relevance is realized when one reads the terms and
conditions put forth by Insurance companies. The above
dictum has relevance to consumers because it puts the
responsibility for selecting the right product on the consumers
than on the company. It also means that “Customer’s
participation in the insurance products are purely on a
voluntary basis.”
63
