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New set of guidelines introduced for insurance advertising in India

The Drum 28 Oct 2020 01:00
Guidelines for Insurance advertising

Advertising and claims go hand in hand but in many categories like insurance it tends to get on sticky wicket when the claims are made beyond possible delivery scenarios. Adverts push them out nevertheless, in the hope of creating demand for the product.

Over the years, insurance advertising has operated in a fairly regulated environment in India. However, the changing consumer demands as well as the evolving marketing environment require a constant evaluation of the regulatory frameworks.

The new rule book

  • In order to strengthen the regulatory framework for one of the most advertised Indian categories (insurance), the regulator Insurance Regulatory and Development Authority of India (IRDAI) has proposed a new set of guidelines to come into play.
  • As per the release, IRDAI is seeking to come out with new advertisement regulations in order to “prohibit insurers from issuing advertisements that make claims which are beyond reasonable expectations of performance.”
  • Another objective of the proposed IRDAI regulation is “to ensure that the insurers, intermediaries or insurance intermediaries adopt fair, honest and transparent practices while issuing advertisements, and avoid practices that tend to impair the confidence of the public.”
  • The proposed regulation is also seeking to ensure that the publicity material is relevant, fair and in simple language, enabling informed decision making.

Sell but don’t mislead

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