The Insurance Regulatory and Development Authority of India on 7th April 2021 has published the Insurance Regulatory and Development Authority of India (Insurance Advertisements and Disclosure) Regulations, 2021.
This Regulations is applicable to all insurers, intermediaries and insurance intermediaries registered with the Authority except those engaged exclusively in reinsurance business. If an entity is engaged in both direct Insurance as well as reinsurance business, these regulations are applicable only in respect of direct Insurance business of such entities
The object of this 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 and to ensure that the advertisement is relevant, fair and in simple language enabling informed decision making.
Every insurer, intermediary or insurance intermediary shall establish and maintain a system of control over the content, form, and method of dissemination of all advertisements concerning its policies or products and shall maintain a specimen of all advertisements for a minimum period of three years.
The insurer or the intermediary shall file a certificate of compliance stating that, to the best of its knowledge, advertisements disseminated during the preceding year have complied with the provisions of these regulations and the advertisement code as stated in Regulation 13 within 30 days of closing of financial year.
Every advertisement by an insurance agent must be approved by the insurer in writing prior to its issue and it shall be the responsibility of the insurer while granting such approval to ensure that all advertisements that pertain to the company or its products or performance comply with these regulations and are not deceptive or misleading.
