IRDAI: New Insurance Sales Rules

IRDAI has issued a new directive that requires every insurance policy to be tagged to an authorized seller, which includes insurance advisors, POSPs, and brokers, starting from January 2027

The move is aimed at curbing mis-selling and ensuring that customers are aware of who is selling them the policy

This change means that advisors will need to ensure that their details are accurately captured and updated on every policy they sell, which may require adjustments to their sales processes and record-keeping

Advisors should review their current sales practices and prepare to implement the necessary changes to comply with the new rules, although details are sparse and it is recommended to await official communication from insurers for specific guidance

It is essential for advisors to stay informed about the developments and updates from IRDAI and insurers to ensure a smooth transition to the new rules