New Delhi, June 30: The Insurance Regulatory and Development Authority of India (IRDAI) is set to issue fresh guidelines for banks to curb the mis-selling of insurance products, IRDAI Chairperson has said.
The proposed guidelines aim to strengthen transparency and ensure that insurance products are sold based on customers’ financial needs and informed consent. The regulator is expected to introduce measures that promote ethical sales practices and enhance accountability among banks distributing insurance products.
According to the Chairperson, the initiative is intended to safeguard policyholders' interests and improve consumer confidence in the insurance sector. The guidelines are also expected to reinforce compliance standards and encourage fair business practices across the bancassurance channel.
Industry experts believe the move will help reduce complaints related to mis-selling and improve the quality of customer service by ensuring greater disclosure and suitability of insurance products.
The detailed guidelines are expected to be released by IRDAI in the coming weeks.
