IRDA Regulation Distance Marketing Terms Part I

This post will enlist the most important terms in Insurance Regulatory Authority of India's latest regulation about Distance Marketing.

The Insurance Regulatory and Development Authority of India(hereinafter referred as IRDA) has exercised the powers under Section 14(1) of the IRDA Act, 1999 and issued some guidelines on 5/04/2011 about Distance Marketing of Insurance Products.

Now we should understand certain terms first.

Distance Marketing

This is the soliciting and selling of insurance products through telephone-calls, short messaging service, e-mails, interactive television, postal, news papers, magazine inserts etc. So this is the type of marketing technique which is indirect.

Tele Marketer and Tele Caller

These are the persons engaged in Distance Marketing. Tele caller interacts with the clients over distance mode upon the instructions of a Tele marketer. “Telemarketer” as per The  Telecom Commercial Communications Customer Preference Regulations, 2010  means a person or legal entity engaged in the activity of transmission of commercial communications. Every Telemarketer has to register with the Telecom Regulatory Authority of India as per the above Telecom Communications Regulations.

Authorised Verifier

He is a person employed by the Tele Marketer for soliciting or selling insurance products over telephonic mode.

Lead Generation

This is the process of collection of details of the prospect client and includes all activities which leads to solicitation of insurance products. This is done to know the interest of the client in purchasing the policy.

Solicitation

This is the process of approaching a client by the insurer/intermediary in order to persuade him to purchase a policy.
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