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IRDAI on Insurance Misselling: Root-Cause Analysis Urged

6 January 20261 min read
BANKING & FINANCEIRDAI on InsuranceMisselling:Root-Cause AnalysisUrged6 January 2026safalsetu.com

Why in the news

The insurance regulator warned that misselling and unfair practices are a growing worry and asked insurers to act so that policyholders are protected and trust in the sector improves.

Key facts

  • Regulator: IRDAI (Insurance Regulatory and Development Authority of India).
  • Instruction to insurers: carry out a root-cause analysis of the reasons behind misselling.
  • Aim: shield policyholders and rebuild confidence.

About misselling

  • Selling a policy without adequate disclosure of its terms and conditions, costs and benefits, and its fit for the buyer.
  • Often involves pushing complex or unsuitable products to hit sales targets.

Government’s position

  • The Ministry of Finance has more than once warned banks and insurers on misselling.
  • Stress on corporate governance best practice, ethical selling and consumer interest.

Exam angle

  • Regulator in the news: IRDAI.
  • Corrective step advised: root-cause analysis.
  • Term to know: misselling.

Test yourself

1. Which regulator called insurance misselling a significant concern and sought corrective action?

IRDAI said misselling remains a significant concern.

2. What did IRDAI advise insurers to conduct on misselling?

Insurers were advised to do a root-cause analysis.

3. In insurance, misselling mainly refers to selling policies without adequate what?

Misselling is selling without adequate disclosure of terms, costs, benefits and suitability.

This topic is part of Daily Current Affairs 4 & 5 January 2026 (16 topics).

All topics of the dayDay quizJanuary 2026

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