ICP 25
CONSUMER PROTECTION
Y. Priya Bharat
ICP 25: CONSUMER PROTECTION
Principle:
.
Minimum
requirements for
Insurers and
Intermediaries in
dealing with
Consumers
ICP 25: CONSUMER PROTECTION
Principle explained:
• Timely, complete and relevant information to
consumers before a contract is entered into
through to the point at which all obligations
under a contract have been satisfied
• Requirements for conduct of business help
strengthen consumer confidence
ICP 25: CONSUMER PROTECTION
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Principle explained:
Requirement for insurers to treat customers
fairly
Good claim resolution process
Rights and Obligations of consumers to be
informed
Distinguish between particular types of
customers
ICP 25: ESSENTIAL CRITERIA
• Act with due skill, care and diligence in dealing with consumers
• Have policies on how to treat consumers fairly and comply with them
• Seek appropriate information from consumers before giving advice or
concluding a contract
• Provide information regarding products and matters connected with sale
Existing framework: PPI Regulations and Code of Conduct for
Agents/Brokers; Corporate Governance guidelines (
mandatory Policyholder Protection Committee)
Proposed initiatives: Guidelines for Distance Marketing; Key
Feature Document; Prospect Product Matrix
ICP 25: ESSENTIAL CRITERIA
• Deal with claims and complaints effectively and
fairly through a simple, easily accessible and
equitable process
Existing framework: PPI Regulations , IRDA
Guidelines for Grievance Redressal ; Channel of
Insurance Ombudsman; IRDA Grievance Cell
accessible through IRDA Call Centre
Proposed initiatives: Integrated Grievance
Management System; Widening scope of
Ombudsman
ICP: 25 ESSENTIAL CRITERIA
• MONITORING MECHANISM:
The compliance of various
provisions/guidelines is monitored through
onsite and offsite inspections/review of
returns relating to policyholder servicing and
complaints redressal
• MEASURES TO ENSURE COMPLIANCE:
Imposed through various types of regulatory
action—advisories, warnings, penalties etc
ICP 25: ADVANCED CRITERIA
• Set rules on the handling of customer information paying due
regard to the protection of private information of customers
Remarks: As far as information/data collected from insurers
relating to customers is concerned, no private information is
collected. As regards personal information arising out of customer
complaints , no personal information is either published or shared
with any other individual/organisation.
• Give information to public about whether and how local
legislation applies to cross-border offering of insurance, such as ecommerce.
Remarks: Cross-border offering of insurance of property situated
in India is not permitted.
ICP 25: ADVANCED CRITERIA
• Warning notices to consumers when necessary in order
to avoid transactions with unsupervised entities
Remarks: Notices of caution issued on the need to
avoid transactions with un-supervised entities and in
cases where mis-sale reported.
• Promote consumers understanding of insurance
contracts
Remarks: Consumer education initiatives through
print, electronic media, seminars etc