Hyderabad: The Insurance Regulatory and Development Authority of India (IRDAI) has issued a master circular to enhance and streamline the governance of insurers’ operations. It has prohibited insurers from marketing unit-linked and/or index-linked products as ‘investment products’. It has outlined specific rules that insurers must adhere to while marketing insurance products.
In a document titled “Master Circular on Operations and Allied Matters of Insurers,” the IRDAI has laid out various requirements for strengthening governance measures in the operations of insurers. This is one of those requirements. There are eleven circulars that have been repealed by the new umbrella directive.
Insurance companies have been requested by the IRDAI to establish an advertisement committee, with approval from the board of directors, and designate a senior distribution channel officer to review and approve advertisements. This is to guarantee that the commercials are truthful and not deceptive.
