It has been observed that insurers are following different methods to arrive at Death Claims paid data (i.e. Death Claims paid ratios), while publishing them in “Insurance Advertisements” [as defined in IRDA (Insurance Advertisements and Disclosure) Regulation, 2000]. In order to have uniformity across the industry, instructions are hereby given to the life insurers to use/publish only “Annual Figures” of Death Claims paid ratios, based on the number of policies alone.
These figures shall reflect the entire financial year and shall be based upon:
- Latest IRDAI Annual Report (or)
- Latest Annual Audited final figures submitted to the Authority
If an Insurance Advertisement contains Death Claims paid ratio, then the data for individual and group polices shall not be clubbed together. The Insurance Advertisements for group products shall reflect only group Death Claims paid ratio and individual products shall reflect only individual Death Claims paid ratio. In case of advertisements’ promoting the Company’s brand without reference to products, only individual death claims paid ratio be used.
The method of calculation for arrival of Death Claims paid ratios for a financial year shall be as followed for reporting in statements 6 & 7 of IRDAI Annual Report of 2015-16.
Further, no other information related to death claim payments, other than what is specified above shall be used as part of any Insurance Advertisement/s. The provisions of this circular come in to immediate effect.