September 15: Insurance Board has issued a new guideline than makes it mandatory for insurance companies to present their evaluation report to the board within five months after the end of a fiscal year. Earlier, the insurance companies had to present their report within 10 months.
The Insurance Board has also issued a circular instructing the companies not to use the terms “free insurance” in their policy.
The board has reached to a conclusion that various industries as well as banks and financial institutions have been promoting their business using the terms “free insurance”, which has had negative impact on the insurance sector.
“Insurance companies should avail their service to the customers through other companies and BFIs without mentioning ‘free insurance’,” the circular states.