IRDA warns insurers, proposal mandatoryIRDA says it's compulsory to issue a proposal form when issuing a policy. The said direction was issued following numerous complaints in this regard.
Apnainsurance.com Research Bureau
20 Feb 2008
The Insurance Regulatory and Development Authority (IRDA) has directed the insurers to abide by the norm of presenting a proposal for insurance.
Provisions have been made for the same under the 'Proposal for insurance' (Section 4) under the IRDA (Protection of Policyholders' Interests), 2002.
IRDA is said to have received several complaints regarding the proposal.
A violation of norms by an insurer would mean appropriate action by the authority.