According to the Insurance Regulatory Development Authority (IRDA), the total number of insurance policies - both public and private, that lapsed during FY 2010-11 stood at 1.40 crore, with an assured sum of Rs 1.58 lakh crore as against 1.23 crore in the previous fiscal.
This was against 1.23 crore policies with an assured sum of Rs 2.14 crore in FY 2009-10, Finance Minister Pranab Mukherjee said that the total number of policies sold in FY 11 stood at 1.10 crore and there were 2,189 complaints of mis-selling registered with IRDA during the period.
AdvertisementOn measures taken by the insurance sector watchdog to ensure a healthy insurance market in the country, he said: "IRDA has mandated insurance companies to put in place an efficient system of grievance redressal and establishment of IRDA Grievance Call Centre (IGCC) and Integrated Grievance Management System (IGMS)".
The Authority on September 20, 2011, notified guidelines on persistency of policies where agents are required to maintain an average persistency rate of 50%. The licence of the agent is renewed only if this condition is met.