IRDA has come out with a set of guidelines to regulate the process of distance marketing of insurance policies through telephone or over the internet. The key points of this set of guidelines is as follows:
1. Telecallers engaged in selling insurance over the phone need to have mandatory training of 25 hours
2. Insurers and brokers have to get their telecalling sales scripts approved through IRDA before use
3. In the case of telecalling, the telecaller has to provide all the details regarding the product features and benefits and mention the risks and exclusions
4.Insurers and brokers have to listen to at least 5% of the calls live and 10% of the calls that lead to a sale, to ensure that the guidelines are being met
5.Single premium ULIPs can be sold only upto a premium of Rs 1 lakh. Regular premium ULIPs sold cannot exceed Rs 50000 of premium per year.
6. Universal Life products cannot be sold through the distance marketing mode
These guidelines come into effect from 1st Oct, 2011.