The Insurance Regulatory and Development Authority has framed certain regulations regarding distance marketing of Insurance Products. The regulations are meant to be followed by various agencies and persons who are carrying out the distant mode of insurance business.
The guidelines are meant to be followed at all the stages of business viz offer, negotiation and conclusion of sale of policy. The guidelines will come to use whenever a policy is marketed via distance marketing which includes lead generation, solicitation etc. Any request by clients for information or sale of insurance products will also come under its purview.
The regulation tells the need of training the telecallers and telemarketers for a good and smooth functioning of insurance business through distant mode. The regulation mandates the use of standardized script while using the distance marketing technique.
Following the guidelines will definitely allow the insurers to know the customer better and the need of persons in various strata. This will benefit the business and policy formation in the future. The process will further ensure transparency. The same will attract more people to the business of insurance. The insurance sector has been more heightened to the level of service by laying down these guidelines. But the public comments is yet to come. Hope IRDA sticks to its policy of healthy and orderly growth of insurance sector.
Read the other three related posts also:
Part I : Important Terms
Part II: Duties and Liabilities
Part III: Standardized Script
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