The success of the product depends upon how effectively the product is advertised in the market – its rightly said “Jo Dikhta Hai Wahi Bikta Hai”, however, while advertising the product the companies need to adopt honest and fair practices to gain public confidence and faith in the product from a long term perspective.
Insurance Regulatory and Development Authority of India (IRDAI), has circulated guidelines to all the insurers (Life, Non-Life and Health) and the intermediaries with regards to the insurance products advertised through – all recognized marketing media, in any mode including printed material, radio, television, emails, hosting on the internet and any other audio/visual electronic media.
Below are the guidelines to be adhered by all the insurers, when they advertise any insurance product:-
Communications should be clear, fair and in accessible manner and not misleading.
If the communication is in vernacular language, the enclosures also to be in same language.
The contents should include critical elements such as – nature of insurance product (whether – ULIP, traditional, shopkeepers, pension), minimum returns in case of ULIP, lock in period, policy charges, safety norms in case of non-insurance products, claim settlement process etc.
Terms and Conditions to be mentioned in big bold font, which is visible to the consumer.
Fund performance/NAV’s (Net Asset Value) to be updated on the company web portal.
In case of product promotion through internet – insurers to make sure that the viewers get full view to read the information, no disguising of any critical information or exaggerating any benefit. In case of emails – provision to unsubscribe from the mailing list.
Hardcopy of the information readily available in case the prospect wants it.
Mandatory mention of helpline number where prospect can call to clarify his doubts/queries.
In case of promotional cold calling the tele-caller should first seek prospect’s permission to continue the call, before introducing self. In no way, the prospect’s privacy to be disturbed.
Every insurer should facilitate an access to DND (Do Not Disturb), so that prospect can register request in case s/he do not wish to be contacted further.
All licensed entities advertising the product should mention their identity and contact details. So the prospect knows with whom to get in touch in case of further queries.
All the literature should contain the “Spurious Calls” notice issued by IRDAI to be aware of fraudulent offers. If the product is advertised in Cinema Hall or on television, the spurious call notice should be displayed for 5 seconds.
