Applying brakes on general insurers taking vehicle owners for a ride, insurance regulator IRDAI on Thursday asked the industry to desist from issuing misleading advertisements.
In a circular to the general insures, the Insurance Regulatory and Development Authority of India (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. It said such advertisements make prospective policyholders vulnerable for wrong understanding.