Hyderabad: Mis-selling of insurance policies is a serious issue in the insurance industry, according to Mr J. Hari Narayan, Chairman, Insurance Regulatory and Development Authority (IRDA).
The instances of mis-selling is significantly larger in the unit linked insurance plans (ULIPs), Mr Hari Narayan told newspersons on the sidelines of the graduation function of ‘Executive Programme in Insurance and Risk Management’ (EPIRM) conducted jointly by ICICI Prudential Life and Institute of Insurance and Risk Management (IIRM) here on Friday.
“The incidence of mis-selling, however, has come down a little from 14 per cent in 2006-07 to 12 per cent in 2007-08. But still about 10 per cent of total complaints received by the authority are on mis-selling,” he said.
On the issue of valuation of insurance companies (to pave way for going public), the chairman said the Actuarial Society of India is on the job. “The IRDA will consider the recommended norms once they are ready,” he said.
When asked on Life Insurance Corporation’s position on the 10 per cent cap on investment in a single company imposed recently by IRDA, he said: “LIC will have to adhere to the norms relating to its investments made after the notifications of the norms.”
It was not mandatory of the State insurer to alter the investment made prior to the announcement of new norms, he added.
Mr Vepa Kamesam, Managing Director, IIRM, said students were trained according to the requirement of ICICI Prudential Life Insurance, which also offered placements to them.
