IRDA to regulate telemarketing of insurance

The Insurance Regulatory and Development Authority (Irda) has now proposed to streamline the promotion of insurance products through distance sales channels, such as the telephone and the internet.

It has said it will issue rules in this regard and these will cover selling by ‘voice mode’, which includes telephone calls, ‘electronic mode’ (e-mails, internet and interactive television) and also the ‘physical mode’, though postal mail and newspapers.


The tele-caller will have to ask if the client is interested in continuing with the subject, and the process of solicitation should proceed further only if he gives his consent in explicit terms. There should be an exit option.


Insurers will have to monitor the quality of sales through telephonic confirmation, post-sales, under all modes of marketing, including in-person and distance modes, by calling up not less than 20 per cent of all the policyholders every month.

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