Dos and don’ts of Titans of Insurance

Dos

• Keep track of the expiry date of your Insurance Regulatory and Development Authority of India (IRDAI) SP certification and ensure that it is valid.
• Identify yourself and disclose your registration/certificate to the customer/prospect on demand.
• Refresh your knowledge of the life insurance products and their benefits, and read the sales material before contacting customers.
• Help customers to fully understand the features, benefits, risks and costs of the life insurance policy they want to buy by doing the following:
  • Provide complete and latest information on a life insurance policy, such as premium type (regular or single), premium paying term, policy term, surrender value, fund performance, past bonus/dividend declaration, if the benefits are guaranteed or not etc.
  • Encourage customers to go through the benefit illustration and other sales materials before making investment decisions.
  • Highlight risk factors of each scheme, if applicable, to customers.
  • Disclose all material information to the customers including all the commissions.
• Ensure that critical operations such as fund switches (in case of Unit Linked Plans [ULIPs]) are done within the time frame prescribed by the authorities.
• Maintain confidentiality of all customer details, medical history etc.
• Follow the Code of Conduct as stipulated by the IRDAI.

Don’ts

• Do not resort to unethical practices by selling life insurance based on unfounded promises.
• Do not misrepresent or exaggerate information.
• Do not induce a customer to omit any material information, nor submit wrong information in the proposal form or any other document.
• Do not collude with customers in faulty business practices, such as misrepresentation of facts in order to claim life insurance benefits or any other money laundering activities.
• Do not conceal relevant information or make any misstatements as it may lead to disputes at the time of a claim.