News eDaily03 Oct 2017

India:IRDAI makes disclosure of death claims clearer

03 Oct 2017

The insurance regulator IRDAI recently issued a circular directing life insurance companies to follow a standard practice in communicating death claims data in their advertisements.

For uniformity across the industry, life insurance companies are now to publish claims ratios that show the number of claims paid to the number of claims received. Illustratively, if an insurer settles a certain number of claims, say, 5,599 in a year out of 6,699 received, then in the advertisement they need to show these figures, not the percentage of claims settled, in this case 83.5%.

The circular clearly says that no other information related to death claim payments, other than the number of policies can be a part of an insurance advertisement, reported The Economic Times.

IRDAI has also mandated that such figures should be for a full financial year and based on the latest annual report of the regulator or the most recent annual audited figures that the insurer has submitted to IRDAI.

Further, to prevent insurers from clubbing data for individual and group insurance policies, IRDAI has directed them to publish the data separately. Therefore, insurance advertisements for individual products shall only reflect the individual death claims paid ratio.

And in advertisements promoting the company's brand without reference to products, only individual death claims ratio is to be used and not the group claims ratio.

 

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