icp 25

ICP 25

CONSUMER PROTECTIONY. Priya Bharat

ICP 25: CONSUMER PROTECTION

.Principle:Minimum requirements for Insurers and Intermediaries in dealing with Consumers


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


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 e-commerce.

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

icp 25

Documents