According to the IRDA rules, no insurance company can sell insurance. So, why do companies advertise? It’s simple. You must include a line after the advertisement. It is a subject matter of solicitation, which means that any company or agent cannot sell it. These companies are telling you that the advertisement we are showing is to inform you about our company and that we have an insurance project. As a result, you are welcome to inquire. Understanding and requesting it is your responsibility.
Why is insurance a subject matter of solicitation?
Companies, agents, and brokers have to make it clear in their communication that insurance is not a ready-made standard product under Clause 9 of the IRDA (Insurance Advertisements and Disclosure) Regulations, 2000. Also, it needs to be discussed and comprehended. Therefore, it can only be “proposed to sale” by companies.
Customers should make a sound decision while purchasing it. You cannot blame anyone for the invalid product because it is a subject of solicitation. Therefore, to avoid this situation, the customer should buy any product after consulting with an expert who will assist him in:
- Recognizing his needs
- The precise amount of insurance needed
- Fixing the product’s tenure
- Choosing the best insurance product from a variety of options
- Choosing a company
- Putting the above plan into action
- Examine his plan over time as his income, age, and responsibilities grow
To summarize, insurance is a subject of solicitation, so make a deliberate decision to cover your risk for financial security. In real life, agents approach you to achieve their business goals, but you should approach them to achieve your financial goals.
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