Source: ET
Context:
India’s insurance regulator has flagged misselling and unfair business practices as a growing concern, calling for corrective action by insurers to protect policyholders and strengthen trust in the sector.
Key Findings
- The Insurance Regulatory and Development Authority of India (IRDAI) has stated that insurance misselling remains a significant concern.
- Insurers have been advised to conduct a root-cause analysis to identify and address the reasons behind such practices.
What Is Insurance Misselling?
- Selling insurance products without adequate disclosure of:
- Terms and conditions
- Costs and benefits
- Product suitability for the customer
- Often involves pushing unsuitable or complex policies to meet sales targets.
Government’s Stand
- The Ministry of Finance has repeatedly cautioned banks and insurers against misselling.
- Emphasis has been placed on:
- Corporate governance best practices
- Ethical sales behaviour
- Protecting consumer interests
