, India

Indian insurers forbidden from advertising services not part of cover

The regulator said this is ‘unacceptable’.

Insurers, especially motor insurers were ordered by the Insurance Regulatory and Development Authority of India (IRDAI) to stop advertising services that are not part of the insurance cover.

Furthermore, general insurers were forbidden to display discounts with reference or comparison to rates of the erstwhile tariff and to ensure that the discounts and savings on the premium which may be applicable only under extreme or exceptional scenarios shall not be displayed as examples.

According to the IRDAI, some general insurers enter into service agreements with motor workshops and garages for the purpose of providing motor insurance claim services for repair of accident vehicles.

The said services, in addition to claim services, extend to certain assistance services not related to insurance claims such as free pickup and drop of vehicle, body wash, interior cleaning, and more.

“While the bundling of the above facilities with insurance is left to the motor service providers, the general insurers issuing advertisements of the said services, projecting them as benefits provided within the insurance cover is unacceptable,” the IRDAI said in a circular to general insurers.

The IRDAI stressed that the main objective of service agreements with motor garages/workshops shall only be providing insurance services for claims of accident vehicles and they cannot arbitrarily expand to include the scope of services which are not relevant for insurance claims.

You may also like:

Igloo secures partnership with Thai telecom firm

Beijing Nova Insurance enters partnership with Towngas Lifestyle

Samsung Life net profits plunges by 72.9%

 

Follow the link for more news on

Join Insurance Asia community
Since you're here...

...there are many ways you can work with us to advertise your company and connect to your customers. Our team can help you dight and create an advertising campaign, in print and digital, on this website and in print magazine.

We can also organize a real life or digital event for you and find thought leader speakers as well as industry leaders, who could be your potential partners, to join the event. We also run some awards programmes which give you an opportunity to be recognized for your achievements during the year and you can join this as a participant or a sponsor.

Let us help you drive your business forward with a good partnership!

Exclusives

Filipino gamers hold promise for FWD
The insurer plans to support other games and aspects of the gaming ecosystem beyond esports.