OIC to regulate advertisements

Source: Bangkok Post, ThailandAug.自存倉 12--The Office of the Insurance Commission (OIC) plans to regulate insurance advertising, particularly TV commercials, with the aim of protecting consumers, says a high-ranking official.A regulation governing insurance advertising is expected to take effect next year, said OIC deputy secretary-general Varawan Vechasut, adding that the OIC has already discussed the issue with insurers.She said once the regulation is implemented, advertising will be required to inform consumers of important conditions in insurance policies.For example, some ads for seniors state there is no requirement for a health check-up or health inquiries.Under the new regulation, such ads will be required to disclose that during the first two years of a policy, premium refunds will be made only in the event of death from health problems, but the insured sum will be paid in the event of accidental death.Insurers are subject to penalties if they breach the regulation, Ms Varawan said.She said the OIC does not have a duty to approve advertisements, but insurers must take responsibility to amend advertising that is questioned by the OIC or consumers.Some 20 million insurance policies have been issued in Thailand, representing 28.6% of the population, and 1% of the policies are for seniors, sa迷你倉新蒲崗d Ms Varawan.The low insurance penetration has caught the eye of foreign companies, although the government does not plan to issue new insurance licences any time soon, said Ms Varawan.Thailand has 24 life assurance companies and 65 non-life insurance firms.Sara Lamsam, president of the Thai Life Assurance Association, has thrown his support behind the new regulation, saying insurance products have become more complicated.Given the time constraints of TV commercials, it is difficult for them to convey all the details of an insurance product, he said.Insurers have used this channel to entice people to buy premiums and prepared officials to provide details of the products to customers, said Mr Sara, also the chief executive of Muang Thai Life Assurance Co.Insurance companies have also offered customers a free trial period of 30 days when policies are bought via telephone and 15 days when policies are bought through agencies.The free trial allows a policyholder to terminate a contract without penalties to avert insurance misselling. A customer can cancel the policy, ask for a change in its features or switch to another policy.Copyright: ___ (c)2013 the Bangkok Post (Bangkok, Thailand) Visit the Bangkok Post (Bangkok, Thailand) at .bangkokpost.com Distributed by MCT Information Services迷你倉出租