Regulatory framework in place for online sale of insurance policies

The Insurance Regulatory and Development Authority (IRDA) has informed Online Sale of Insurance Policies is one of the ways of distribution of insurance policies.

IRDA has put in place a regulatory framework for enhancing the transparency and improving the informed choice amongst all classes of policyholders during the course of solicitation of insurance business and all Insurers are required to comply with the IRDA (Protection of policyholders’ interests) Regulations, 2002.

The online sale of insurance policies should also comply with IRDA Guidelines on Distance Marketing of Insurance Products. All other extant regulatory framework are equally applicable to online sale of insurance policies.

52 Complaints have been registered in IRDA’s Integrated Grievance Management System (IGMS) with regard to alleged mis-selling in online sale of insurance policies. Out of that, 50 complaints have been resolved by the Insurers and 2 complaints are pending.

This was stated by Minister of State for Finance,  Namo Narain Meena in written reply to a question in Rajya Sabha