Is Insurance a Subject Matter of Solicitation?

    At the end of every insurance advertisement, we would find the words: “Insurance is a subject matter of solicitation.”

    It means that insurance has to be requested or asked for, not sold. However, our experience in real life is very different.

    Only in the case of Motor Insurance do we ASK for an insurance cover, since without insurance, the transport authority refuses to register the vehicle! It is legally required to have at least a Third-Party liability policy, without which, it is illegal to drive a vehicle on the road.

    Prior to its substitution, Regulation 9 read: Identity of advertiser- Every advertisement for insurance shall

    • state clearly and unequivocally that insurance is the subject matter of the solicitation; and
    • state the full registered name of the insurer/ intermediary/ insurance agent.

    In 2015 IRDAI removed 9 (i) from the regulations. Following this, advertisements were no longer required to have the statement “Insurance is a subject matter of solicitation.”

    This effectively means, Insurance is SOLD … even if you have not ASKED for it!


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