Looking to
insure your life but don't know which policy to buy? Leave it on the agent to explore and explain. Insurance agents and brokers will not just highlight the benefits of
life insurance policies but will have to analyse the requirements of prospective buyers before selling them policies.
SPECIAL: Are you insured enough? The insurance regulator Irda has floated a draft proposal suggesting that 'insurance need analysis' of customers by intermediaries and insurers be made mandatory before sale of insurance policies.
MUST READ: New age insurance covers Initially, the analysis will be mandatory only for traditional life insurance policies, unit-linked policies, pension plans and health products sold by life insurers. The analysis will not be required if the a buyer voluntarily opts out of it by refusing to provide the necessary information.
Insurers will have to develop a suitability index based on a prospective buyer's age, income, risk profile, financial situation, investment objectives and investment experience. Insurance agents and brokers will be able to recommend suitable products using the index.
The insurance regulator has sought suggestions from industry stakeholders on the proposed guidelines. If the guidelines are finalised, the analysis will become mandatory from 1 April 2012.
