IRDAI takes cognizance of misleading vehicle insurance advertisements

IRDAI said such advertisements make prospective policyholders vulnerable to wrong understanding

May 20, 2022

IRDAI’s strict instructions regarding vehicle insurance, attractive offers will not be publicized

Taking Cognizance of the misleading advertisements for vehicle insurance, the Insurance Regulatory and Development Authority of India (IRDAI) on Thursday asked the industry to desist from issuing misleading advertisements. It said such advertisements make prospective policyholders vulnerable to wrong understanding.

In a circular to the general insures, the IRDAI has asked the insurers to discontinue the advertisements in respect of the services not related to insurance claims provided by motor garages/ workshops, to stop displaying discounts with reference to erstwhile tariff/ premium rates, and stop displaying of discounts/ savings in premium applicable only under extreme or exceptional scenarios as examples.

According to the IRDAI, general insurers issuing advertisements on free vehicle pick up and drop, body wash, interior cleaning, and others are not related to servicing of claims and should not be done.

The regulator also said perusal of some advertisements of general insurers showing discounts and savings in premium can be achieved only in extreme or exceptional scenarios.

[With Inputs from IANS]

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