Latest Posts


Saturday, February 4, 2012

Life insurance sale must be need based, says IRDA

The sale of life insurance policies are set to become more scientific soon.
The life insurers should ensure a need-based sale of life insurance products by their direct sales personnel, the Insurance Regulatory and Development Authority said in the draft guidelines on product matrix released on Tuesday.
“It is important and necessary for insurers to have in place a suitability index (or a prospect product matrix) that can serve as a self governing tool to assess the quality of sale,” Mr J. Hari Narayan, Chairman, IRDA said.
As per the draft guidelines, an insurer or a distributor must make reasonable efforts to obtain a consumer's suitability information prior to making a recommendation to the consumer on a product.
Suitability information means information should include factors such as age, annual income and financial resources used for funding the purchase of the life insurance product besides risk tolerance.
The regulator is planning to bring the product matrix (or need-based sale) from April 1, 2012.
Source :

1 comment:

  1. Insurance for the accomplished ancestors additionally requires that all the developed ancestors associates be absolutely acquainted of all the allowance behavior taken, their allowances and exclusions and area they are kept. Having an accessible altercation about continued appellation accumulation and allowance affairs both for the aliment earner and home maker and for accouchement body a more good ancestors compassionate and bond.

    Best Health Insurance