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ALL INSURANCE COMPANIES/INSURANCE INTERMEDIARIES/CONSUMER BODIES/POLICYHOLDERS/MEMBERS OF THE PUBLIC
Ref. No:5/CAD/MC/NL/2011-12 Date:02-02-2012
Discussion paper on Tying/Bundling in Insurance
Cross-selling of products in financial services, including insurance products, is common.  Insurance products may be bundled with other financial services or with goods.  
Tying is defined as two or more products packaged together where at least one of the products is not sold separately while Bundling occurs when products are packaged but are also available separately.
There could be various issues of concern for the consumer that arise from cross-selling. Packaging two or more products could become unfair to the consumer when it impedes his or her choice or makes price comparisons difficult or impossible. 
One of the major concerns is bringing in transparency to prevent unfair commercial practices. At the same time, cross-selling facilitates service providers to use existing channels to reach out to those who are looking to buy insurance products. It is, however, necessary to ensure that the consumer is not put to any kind of disadvantage because of the packaging.
Attached is a Discussion Paper (Attached) on the subject. We seek views/feedback on the thoughts covered in the paper as well as suggestions, if any. Kindly mail them to ypriyab [at] irda [dot] gov [dot] in on or before 15th March, 2012.
 
J. HARI NARAYAN
CHAIRMAN
Insurance Regulatory and Development Authority of India. All Right Reserved.