IRDA™s proposed application form may be difficult for consumers

Life insurers said that the seven pages draft application form proposed by IRDA (Insurance Regulatory and Development Authority) to facilitate need-based selling is too complex, according to media reports.

The application form has detailed questions which customers have to fill. The form also requires insurers, agents and brokers to sign on the recommendations they make to the customers, thereby putting the burden for selling the insurance product on them, the reports added.

The proposed application form has four sections”section A asks for details of the prospective customer; section B, specialised and additional information; section C, needs of the prospect; and section D, the recommendation of the agent.

The IRDA™s has introduced the proposed form with a purpose to stop mis-selling of products. The insurance advisory committee, at its meeting held recently, introduced the exposure draft. The members of the advisory committee include representatives from IRDA, life and general insurers, brokers, actuaries™ institute, ministries of shipping, law and finance, and industry bodies.

http://www.indiainfoline.com/Markets/News/IRDAs-proposed-application-form-may-be-difficult-for-consumers/5598405659