IRDA NEWS: IRDA bans websites from display of product comparison and rankings

IRDA has banned all websites from showing any insurance product comparison, displaying ratings, rankings, endorsements or bestsellers of insurance products on their website. IRDA has issued new regulations for web aggregators.

Display of product comparisons on the web site:

1. Web aggregators shall not display ratings, rankings, endorsements or bestsellers of insurance products on their website. The content of the websites of the web aggregators shall be unbiased and factual in nature; they shall desist from commenting on insurers or their products in their editorials or at any other location in their websites.

2. The default/home page of the websites of the web aggregators shall clearly and prominently provide links to the product comparison charts and tables for each category of products covered by them. The visitor to the website should be given clear product options to choose from and once a particular option is chosen, a product comparison chart relevant to his choice shall be displayed.

The product comparison chart shall have, interalia, columns to display

a) the premium quoted by each insurer relevant to the age, health and other personal details of the client for the product category, policy/premium term, quantum of cover etc chosen

b) the default underwriting requirements such as medical examination, diagnostics or other documents c) exclusions, limits or other conditions, if any

c) key features of the product chosen.

3. Web aggregators shall disclose prominently on the home page that the client/visitor’s particulars could be shared with insurers/insurance brokers.

4. Web aggregators shall not carry any advertisements or sponsored content on their websites.

5. Product comparisons that are displayed shall be upto date and reflect a true picture of the products.

6. Web aggregators shall display product information purely on the basis of the information furnished to them by insurers.

This move has been widely criticized by all existing web aggregators and according to them this will mean an end to growth of web aggregation in india.