As per IRDA's regulation, every insurance advertisement should print the statement _ "Insurance is the subject matter of solicitation." In the absence of any authentic interpretation of this statement, people tend to believe the most prevalent view to be correct. This article attempts to give an apt interpretation based on relevant regulations and guidelines. It also mentions prevalent misinterpretations in the industry, and analyzes why they are inappropriate. Finally, the article elaborates on the need for this disclosure in advertisements and the purpose it serves to customers.

"Insurance is the subject matter of solicitation" _ is a prominently displayed statement in insurance advertisements, websites and marketing brochures as per the directive of the Insurance Regulatory and Development Authority (IRDA). The statement, being abstract, gives ample scope for various intriguing explanations. In the absence of any authentic interpretation of the statement, people tend to believe the most prevalent view to be correct. But a meticulous analysis of relevant regulations will give us the opposite perspective.

IRDA published "Insurance Advertisement and Disclosure" Regulations and subsequently issued Guidelines on "Advertisement, Promotion & Publicity of Insurance Companies and Insurance Intermediaries". Additional guidelines have also been issued for disclosures in respect of Unit Linked Insurance Products.

It is through the Regulation-9, IRDA mandated mention of this statement in insurance advertisementsin the context of establishing identity of advertiser. This regulation says:

Regulation-l (b) defines `insurance advertisement' for the purpose of this regulation. This definition of `advertisement' includes both public communications such as advertisements on newspapers, magazines, hoardings, television, websites etc., and communications through specific forms of `solicitation' such as sales talks, sales aid flyers, leaflets, illustrations, telephone solicitations, etc. In general, any communication with a prospect or a policyholder that urges him to purchase, renew, retain or modify a policy of insurance is considered an `advertisement'.

The Guidelines provide further description to the definition of `insurance advertisement' given in Regulations. Guideline 2.2 describes any advertisement issued for the purpose of soliciting insurance business, and/or to influence the choice, opinion or behavior of the prospective policyholders as `insurance advertisement'. They further categorize advertisements as `invitation to inquire' and `invitation to contract'. These Guidelines also provide a detailed list of do's and don'ts under different categories of advertisements and prescribe the degree of details necessary to be included in advertisements. Invitation to contract category of advertisements would need more detailed description of products being advertised. And in `invitation to inquire' category of advertisements, only basic features of products may be given.

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