All Insurers

Re: Regulation 4(1) and 4(4) of IRDA (Protection of Policyholders’ Interests) Regulations, 2002.

Insurers’ attention is invited to Regulation 4(1) & 4(4) relating to proposal for insurance under the IRDA (Protection of Policyholders’ Interests) Regulation, 2002. Authority is in receipt of several complaints citing instances of policies being issued without collecting a proposal form in terms of Section 4(1) or where a proposal form is not used, without confirming the information collected from proposers to them within 15 days of collecting the information either orally or in writing, as required by Section 4(4) of the Regulations.

In particular, the number of complaints of policies being issued without the consent of the policyholders, either through tele-marketing and/or the banking channels, specially through credit cards, is on the rise.

In view of the above, Authority advises all insurers to strictly follow the provisions relating to ‘Proposal for insurance’ (Section 4) under the IRDA (Protection of Policyholders’ Interests), 2002. Any instance of violation by an insurer shall be viewed seriously by the Authority and action as deemed fit, taken.

( C. S. Rao )
Chairman