Crux of the discussion paper:
IRDA has come out with a discussion paper in bundling of insurance products with other financial services or goods (Cross selling of products).
It is noted by the authorities that due to cross selling the consumers could face various issues or concern and they could even be fallen as prays towards the unfair trade practices that could be adopted by various companies when it impedes the consumer’s choice or when the consumer finds it difficult or impossible to makes price comparisons.
Therefore the authorities have brought forward this discussion paper to invite suggestions/ views/ feedback and major concerns in cross selling of products there by it would help them to bring in transparency.
It is also to be noted that cross selling facilitates service providers to use existing channels to reach out to those who are looking to buy insurance products along with the tied up goods. However the authorities taking steps to ensure that the consumers are not put to any kind of disadvantage because of cross selling of products.
In this regard the discussion paper is available on the following link at the suggestions/ views/ feedback in invited to be presented on or before March 15, 2012.
IRDA Circular :