Section 2   [ View Judgements ]

Definitions


Unless the context otherwise requires, -



(a) "Authority" means the Insurance Regulatory and Development Authority established under sub-section (1) of section 3 of The Insurance Regulatory and Development Authority Act, 1999 (41 of 1999);



(b) "insurance advertisement" means and includes any communication directly or indirectly related to a policy and intended to result in the eventual sale or solicitation of a policy from the members of the public, and shall include all forms of printed and published materials or any material using the print and or electronic medium for public communication such as:



i) newspapers, magazines and sales talks;



ii) billboards, hoardings, panels;



iii) radio, television, website, e-mail, portals;



iv) representations by intermediaries;



v) leaflets;



vi) descriptive literature/ circulars;



vii) sales aids flyers;



viii) illustrations form letters;



ix) telephone solicitations;



x) business cards;



xi) videos;



xii) faxes; or



xiii) any other communication with a prospect or a policyholder that urges him to purchase, renew, increase, retain, or modify a policy of insurance.



Explanation: The following materials shall not be considered to be an advertisement provided they are not used to induce the purchase, increase, modification, or retention of a policy of insurance:- (i) materials used by an insurance company within its own organization and not meant for distribution to the public;



communications with policyholders other than materials urging them to purchase, increase, modify surrender or retain a policy;



materials used solely for the training, recruitment, and education of an insurer's personnel, intermediaries, counsellors, and solicitors, provided they are not used to induce the public to purchase, increase, modify, or retain a policy of insurance



iv) any general announcement sent by a group policyholder to members of the eligible group that a policy has been written or arranged.



(c) " intermediary or insurance intermediary includes insurance brokers, reinsurance brokers, insurance consultants, surveyors and loss assessors, or any other person representing or assisting an insurer in one or more of the following :



i) soliciting, negotiating, procuring, or effectuating an insurance contract or a renewal of an insurance contract;



ii) disseminating information relating to coverage or rates;



iii) forwarding an insurance application;



iv) servicing and delivering an insurance policy or contract;



v) inspecting a risk;



vi) setting a rate;



vii) investigating or assessing a claim or loss;



viii) transacting a matter after the effectuation of a contract; or



ix) representing or assisting an insurer or other person in any other manner in the transaction of insurance with respect to a subject of insurance resident, located or to be performed in India.



x) Servicing a policy or contract.



(d) "unfair or misleading advertisement" will mean and include any advertisement:



(i) that fails to clearly identify the product as insurance;



ii) makes claims beyond the ability of the policy to deliver or beyond the reasonable expectation of performance;



iii) describes benefits that do not match the policy provisions; uses words or phrases in a way which hides or minimizes the costs of the hazard insured against or the risks inherent in the policy;



omits to disclose or discloses insufficiently, important exclusions, limitations and conditions of the contract; gives information in a misleading way;



illustrates future benefits on assumptions which are not realistic nor realisable in the light of the insurer's current performance;



where the benefits are not guaranteed, does not explicitly say so as prominently as the benefits are stated or says so in a manner or form that it could remain unnoticed;



implies a group or other relationship like sponsorship, affiliation or approval, that does not exist; makes unfair or incomplete comparisons with products which are not comparable or disparages competitors.



(e) "Prospect" means any party that enters or proposes to enter into an insurance contract directly, or through an insurance intermediary.



Words and expressions used and not defined in these regulations but defined in the Insurance Act, 1938 (4 of 1938), or the Life Insurance Corporation Act, 1956 (31 of 1956) or the General Insurance Business Nationalisation) Act, 1972 (57 of 1972), or Insurance Regulatory and Development Authority Act, 1999 (41 of 1999) shall have the meanings respectively assigned to them in those Acts or the rules as the case may be.

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