Insurance policies are sold over the phone or the internet as well as through bank ATMs and so on.

These other than face-to-face selling methods have their own peculiarities and drawbacks.

IRDA has put out some guidelines to insurance companies in order to protect the interests of people who buy policies through such channels.

Guideline for the distance Marketing of the IRDA

The Guidelines of the IRDA Distance Marketing are given below :

a) Distance marketing includes every activity of solicitation (including lead generation) and sale of insurance products through the following modes:

(i) Voice mode, which includes telephone-calling;

(ii) Short Messaging service (SMS);

(iii) Electronic mode which includes e-mail, internet and interactive television (DTH);

(iv) Physical mode which includes direct postal mail and newspaper & magazine inserts; and,

(v) Solicitation through any means of communication other than in person.

These Guidelines are specifically applicable in case of the following activities in addition to other similar activities:

(i) Use of distance mode for ascertaining the client’s intent to purchase insurance.

(ii) Solicitation as well as sale over the distance mode.

(iii) Lead Generation; and,

(iv Requests by clients seeking information or sale of insurance products.

IRDA Guidelines for the Distance Marketing