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The sale of insurance products through telemarketing, SMS, Internet or through any other modes of distance marketing will soon be more reliable.
“Every tele-caller should be trained by any institute accredited by the Authority,” Mr J. Hari Narayan, Chairman, Insurance Regulatory and Development Authority (IRDA), said in the new guidelines on distance marketing of insurance products released on Wednesday.
The insurers, brokers and corporate agents should maintain a register of all persons engaged by them or by the telemarketers hired by them for the purpose of lead generation/solicitation of insurance business.
Further, all calls would have to be recorded to be transferred to the insurer. “The price comparison charts that are displayed shall be up-to-date and reflect a true picture of all the available and suitable products under each category,” he said.
The insurers shall specifically identify the proposals procured by brokers over distance mode.
All the relevant records pertaining to such policies should be maintained to be produced before the Authority in case of dispute involving alleged violation of breach of conduct by the broker.
NO HARASSMENT
The clients should be extended an option to continue with the subject or exit the page at every stage in case of electronic modes.
“The hours during which calls are made shall be in accordance with orders issued by TRAI/DoT from time to time,” the guidelines said.
Tele callers need to inform clients that the call is being recorded and that the client is entitled to a voice copy, if he so desires, at any time during the term of the policy or until a satisfactory settlement of claim.
ULIP
The IRDA had also barred the insurers from soliciting Unit-Linked Insurance Products (ULIPs) of non-single premium type for annualised premiums exceeding Rs 50,000 over telephonic mode (voice as well as SMS).
The single premium ULIPs shall not be solicited for a premium of more than Rs 1 lakh over telephonic mode.
No variable insurance product shall be solicited or sold over distance marketing mode, according to the guidelines, which would come into effect from October 1, 2011.
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