Irda tightens policy norms for insurance agents

NEW DELHI: Seeking to safeguard interest of customers, Irda has made it mandatory for agents to provide full details in transparent manner before persuading policyholders to shift to another life insurance firm. Tightening of replacement norms would help in retaining the life insurance policy.

“To protect the long-term interests of life insurance policyholders and to discourage intermediaries persuading lapsing, surrendering or making paid-up of an existing life insurance policy with the intent of canvassing or soliciting a new life insurance policy on the same life,” Irda said in a draft exposure.

The guidelines envisage the full disclosure and transparent information to the policyholder to avoid a possible misrepresentation as to the factual position of financial consequences of replacing an existing life insurance policy, it said.