IRDA for transparency from life insurance firms

Posted By: Religare
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IRDA said that life insurance companies should unmistakably mention all the underlying conditions of the policy.
Conditions like the several charges and cost of guarantee in the advertisements about their products.
Meanwhile, IRDA said that the brand names of insurance products must not use terms or phrases that express a fabricated sense of security.
This was said in a circular on guidelines for advertisements issued on August 16.
The actual asset mix of several underlying funds vis-À-vis the asset composition of approved asset pattern should be disclosed.
This, however, is in advertisements/promotional campaigns pertaining to unit-linked life insurance products (ULIPs).
On the other hand, these details should also be placed on the portal of respective insurance companies at least on a half yearly basis.
Earlier, Insurance Regulatory and Development Authority (Irda) stated that it has finalized the IPO guidelines for insurance companies.
It also said that for final approval which is expected soon, it has referred the same to the capital markets watchdog Sebi.
Meanwhile, J Harinarayan, Insurance Regulatory and Development Authority (Irda) chairman said that Irda gave its observations and the matter is currently with Sebi.
Irda has been working on the initial public offer guidelines along with Sebi.
It, however, is expected to come out with a draft for public comments before issuing the final norms.
Many private sector insurers, including Reliance Life showed interest in tapping the capital market in order to boost their resource base.
The Insurance Regulatory and Development Authority (IRDA) is a national agency of the Government of India, based in Hyderabad.
It was formed by an act of Indian Parliament known as IRDA Act 1999, which was amended in 2002 to incorporate some emerging requirements.
Mission of IRDA as stated in the act is "to protect the interests of the policyholders, to regulate, promote and ensure orderly growth of the insurance industry and for matters connected therewith or incidental thereto."
In 2010, the Government of India ruled that the Unit Linked Insurance Plans (ULIPs) will be governed by IRDA, and not the market regulator Securities and Exchange Board of India.

Story first published: Thursday, August 26, 2010, 19:20 [IST]
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