Now Insurance is not Subject matter of solicitation

By | November 17, 2015

THE GAZETTE OF INDIA : EXTRAORDINARY

PART III—Section 4

INSURANCE REGULATORY AND DEVELOPMENT AUTHORITY OF INDIA

NOTIFICATION

Hyderabad, the 4th November, 2015

Insurance Regulatory and Development Authority of India (Insurance Advertisements and Disclosure) (Amendment) Regulations, 2015

F. No. IRDAI/Reg/19/109/2015 – In exercise of the powers conferred by Section 26(1) of the Insurance Regulatory and Development Authority Act, 1999 (41 of 1999), the Insurance Regulatory and Development Authority of India, in consultation with the Insurance Advisory Committee, hereby makes the following Regulations to amend the Insurance Regulatory and Development Authority (Insurance Advertisements and Disclosure) Regulations, 2000 namely:—

Short Title and commencement

1. (1)These Regulations may be called Insurance Regulatory and Development Authority of India (Insurance Advertisements and Disclosure) (Amendment) Regulations, 2015.

(2) These Regulations shall come into force on the date of their publication in the Official Gazette.

2. Regulation 9 of IRDA (Insurance Advertisements and Disclosure) Regulations, 2000 is amended by omitting Section 9(i). The amended Regulation 9 shall be read as under :

“Identity of advertiser

9. Every advertisement for insurance shall state the full registered name of the insurer/ intermediary/insurance agent.”

T. S. VIJAYAN,

Chairman

[ADVT-III/4/Exty/161/15/(251)]

Comment of tax heal on the Above Notification of the Govt :-

Before the Above Amendment the Regulation 9 of IRDA (Insurance Advertisements and Disclosure) Regulations, 2000 was as Follow

Identity of advertiser — Every advertisement for insurance shall

(i) state clearly and unequivocally that insurance is the subject matter of the solicitation; and

(ii) state the full registered name of the insurer/ intermediary/ insurance agent.

(Note of Taxheal :   So the meaning of Insurance is a subject matter of is that Insurance is a financial product which buyer has to ASK FOR , it cant be sold.

insurance isn’t a ready-made standard product like say, a bar of chocolate, that can be sold outright, it has to be discussed, understood. The right offering suited to your specific needs and requirements has to be considered taking into accounts, the terms, conditions and exclusions. Companies can only “offer to sell” insurance becomes a product that you-the-customer must evaluate carefully after you have understood all its features, rules, conditions and exclusions. The onus of buying an insurance policy with its terms lies with the customer solely.

buying a house is exactly like this. There is no pre-packaged sale, and the buyer must be careful regarding terms, value, customization, fit and so much more. This in effect also means that you have all the rights to inquire about the product, understand the benefits, conditions, disclaimers and exclusions before you make your decision. Only when you are fully satisfied with what you are getting into should you go ahead )

After Above Amendment :-

“Identity of advertiser

9. Every advertisement for insurance shall state the full registered name of the insurer/ intermediary/insurance agent.”

 

 

Category: Uncategorized

Leave a Reply