Protection Of Interests Of Policyholders

Protection Of Interests Of Policyholders

Protection of Interests of Policyholders Draft Protection of policyholders’ interests regulations: The basic framework for protection of policyholder’s interests is contained in the IRDA (Protection of policyholder’s Interests) Regulations 2002. Since then, the insurance industry has witnessed numerous changes such as introduction of new type of products like micro insurance products, ULIP products, Health Insurance etc, new categories of distribution channels like Corporate Agents, Insurance Brokers, web-aggregators and Insurance Marketing Firms (IMF) have been permitted to carryout insurance distribution activities.

It is observed that with increase in competition the need to bring in more transparency in insurance sales process, strict enforcement of code of conduct by agents and intermediaries, has arisen.

The FSLRC recommendations relating to consumer protection also call for regulations to provide for greater consumer protection at all stages of financial transactions. Therefore the need to examine the current regulations inline with changing times was felt necessary. And as such IRDAI constituted a standing advisory committee to have a relook at the existing regulations pertaining to consumer protection, review of TATs for various services and contemplating introduction of a Citizen’s Charter for the insurance industry prescribing timelines for various services in each line of business.