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The insurers will now have to be more clear and transparent in advertisement campaigns and publicity for their products.
``All insurers should ensure that communications are clear, fair and not misleading whatever be the mode of communication. All advertisements must clearly state the availability of underlying element of life insurance coverage to identify the product of as an insurance product,'' the regulator said in a Master Circular.
On ULIPs
In respect of the Unit Linked Life Insurance Product (ULIPS), the actual asset mix of various underlying funds vis-a-vis the asset composition of approved asset pattern shall be placed on the web portal of respective life insurance companies at least on a half-yearly basis, the circular said.
The insurers should not highlight `the positive financial condition of the parent (promoting partner) without mentioning the financial health of the insurer and or indicate the assets of the parent company which can be banked upon when desired.
While explaining the rationale behind regulating the nature and content of an advertisement, IRDAI said the success of insurance sales' communication depends on public confidence and the faith they repose in the insurers.
``As such, the insurers are expected to adopt fair, honest and transparent practices in the market place and avoid practices that tend to impair the confidence of the public,'' it said.
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