Kathmandu. The Insurance Regulatory and Development Authority of India (IRDAI) has proposed a new draft reform to protect the rights and interests of the insured and make the insurance distribution system more transparent. The draft includes various new rules to prevent fraud in the purchase of insurance and to protect the insured financially. <\/p>\n
Key improvement proposals and benefits to the insured:<\/p>\n
1) Make the commission transparent <\/p>\n
According to the new draft, insurance companies and agents will have to clearly show the insured how much commission they get from the policy sold. This will make it easier for the customer to understand the actual cost of the policy. <\/p>\n
2) Mis-selling: Strict action on <\/p>\n
A new provision has been introduced to prevent agents or bank employees from selling unwanted or false insurance policies to customers in the greed of high commission. <\/p>\n
Identification of the employee in the sale: The identity of the salesperson or agent will be mandatorily added to each policy. <\/p>\n
Refund of commission: If an insurance policy is found to have been sold incorrectly, the commission paid to the agent or bank will be withdrawn. <\/p>\n
Ban on goal-based bonus: There is a proposal to ban volume-based or gift-based incentives to employees of banks and financial institutions based on the sale of insurance. <\/p>\n
3) Customer’s Requirement Test<\/p>\n
Before selling any insurance policy, it will be mandatory to study the financial condition and needs of the customer. Only the appropriate and necessary insurance policy will be recommended to the customer. <\/p>\n
4) Simplification of insurance initiation and management <\/p>\n
By further simplifying the distribution structure, an environment will be created where the insured can easily understand the role of insurance service providers and agents. In addition, the use of digital infrastructure such as insurance will be made faster and more efficient. <\/p>\n
5) Insured Education and Protection Fund <\/p>\n
The regulator has strengthened the policy framework to make insured consumers aware of the rights and return the real beneficiary by searching for unclaimed amounts. <\/p>\n
The main objective of this draft is to make the insurance purchase process customer-oriented, transparent and reliable. This will protect the insured consumers from the fraud of agents or intermediaries.<\/p>\n","protected":false},"excerpt":{"rendered":"
Kathmandu. The Insurance Regulatory and Development Authority of India (IRDAI) has proposed a new draft reform to protect the rights and interests of the insured and make the insurance distribution system more transparent. The draft includes various new rules to prevent fraud in the purchase of insurance and to protect the insured financially. Key improvement […]<\/p>\n","protected":false},"author":5,"featured_media":239022,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[45031,45152,45159,45099],"tags":[],"class_list":["post-317341","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-banner-news-en","category-life-insurance-en","category-news-en","category-regulatory-en"],"acf":[],"_links":{"self":[{"href":"https:\/\/insurancekhabar.com\/ikbrapi\/wp\/v2\/posts\/317341","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/insurancekhabar.com\/ikbrapi\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/insurancekhabar.com\/ikbrapi\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/insurancekhabar.com\/ikbrapi\/wp\/v2\/users\/5"}],"replies":[{"embeddable":true,"href":"https:\/\/insurancekhabar.com\/ikbrapi\/wp\/v2\/comments?post=317341"}],"version-history":[{"count":1,"href":"https:\/\/insurancekhabar.com\/ikbrapi\/wp\/v2\/posts\/317341\/revisions"}],"predecessor-version":[{"id":317342,"href":"https:\/\/insurancekhabar.com\/ikbrapi\/wp\/v2\/posts\/317341\/revisions\/317342"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/insurancekhabar.com\/ikbrapi\/wp\/v2\/media\/239022"}],"wp:attachment":[{"href":"https:\/\/insurancekhabar.com\/ikbrapi\/wp\/v2\/media?parent=317341"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/insurancekhabar.com\/ikbrapi\/wp\/v2\/categories?post=317341"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/insurancekhabar.com\/ikbrapi\/wp\/v2\/tags?post=317341"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}