They should use material and design (including paper size, colour, font type and font size, tone and volume) to present the information legibly and in an accessible manner, Irdai said.
Also, the mandatory disclosures should be in the same language as that of the whole advertisement.
"Names of insurance products or benefits" must not use terms or phrases that convey a fabricated sense of security, the circular said.
It further said that in case of communications through internet, an "insurer should ensure that the recipients/viewers have the opportunity to view the full text of the relevant key features; terms and conditions; any other applicable risk information...they shall not be hidden away in the body of the text".
Irdai said the success of insurance sales communication depends on public confidence and the faith they repose in the insurers, when they receive a communication from companies promoting their products.
"As it may be difficult for the public to understand and evaluate the inherent details in the various insurance products, it is of paramount importance that the publicity material is relevant, fair and in simple language enabling informed decision making about whether or not to buy a specific insurance product," it said.
The circular also said all licensed entities soliciting insurance business should mention their identity and contact details.
Any person found to be guilty of misleading the prospect on any insurance product will be liable for regulatory actions, it added.
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