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Insurance sector regulator IRDAI has directed life insurers in the country to mandatorily detail guaranteed and non-guaranteed benefits on investments in their advertisements.
As per Insurance Regulatory and Development Authority of India (IRDAI) norms, it is mandated that all insurance products should provide the prospective policyholder a customised benefit illustration, depicting the guaranteed and non-guaranteed benefits at gross investment returns of 4% and 8% respectively.
"However, it is observed that some of the advertisements containing illustrations being released in the market are not in tune with the spirit of the above regulations and hence fail to enable the prospects to compare both scenarios; so as to give better appreciation of possible benefit depending on the yield," IRDAI said in an order today.
Hence it is advised that wherever the illustration is given in advertisements, it must be with both the scenarios with investment returns of 4% and 8% with equal prominence in font size, at the same place and in the same page, it added.
IRDAI said the order will come to effect from December 1.
