The Insurance Regulatory and Development Authority (Irda) has directed the Tata AIG Life Insurance Company and Royal Sundaram Alliance (RSA) Insurance Company to modify their distribution plans for the sale of policies through credit cards. This follows the controversial Citibank offer of a personal accident cover from RSA and a credit shield from Tata AIG -- Suraksha -- to its credit cardholders.
The regulator had written to the two insurers following reports over disgruntled Citibank cardholders, requesting clarification over violation of advertising and disclosure norms laid down by the authority.
Citibank in a faxed response stated,