To better penetrate the insurance market in India, the Irda advised companies to de-jargonise their policies.
Speaking at 13th Insurance Summit organised by the industry body CII, Insurance Regulatory Development Authority Chairman J Hari Narayan also said the watchdog will soon come out with norms for universal policies– a Ulip-like product in which a part of the premium is set aside for covering life risk.
Observing that one way for deep market penetration is making the policy documents and contracts comprehensible to laymen, he asked the insurers to simplify their policy documents by de-jargonising the contractual terms and conditions.
“There is absolutely no need for so much jargonised policy documents and contractual notes for most of the insurance products available in the country today. Therefore, I feel that the insurers could and should simplify the language in which their policy documents and contracts are stated,” Narayan said.
