IRDAI Regulations 2024: Comprehensive Overview of Policyholder Protection and Insurer Operations
5. Definitions applicable to Part A
Chapter 3 - Sale and Issuance of Insurance Policies
Privacy and Confidentiality
Bare Act
15. Privacy and Confidentiality
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(1) Subject to ensuring compliance as per extant law on data protection, insurers and distribution channels shall ensure that the information and documents collected during the solicitation or subsequently during all times are maintained with utmost confidentiality, privacy and protected manner.
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(2) Subject to sub-regulation (1), information collected from the proposal form during the course of solicitation of an insurance policy or issuance of an insurance policy shall not be parted or shared with any third party without the explicit consent of the policyholder, except
- a. with the statutory authorities in accordance with the existing statutory laws; or
- b. for the purpose of underwriting the policy or settling a claim under the policy; or
- c. with any other institution as authorised by the Authority.
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(3) No insurer shall insert any clause or condition in the proposal form which, by default, allows the insurer to part or share policyholder’s information to any third party.
Simplified Act and examples below are previews.
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This section of the IRDAI Regulations, 2024, focuses on how insurance companies and their partners must handle personal information. It emphasizes the importance of keeping this information private and secure. The section outlines rules about sharing information and
Explanation using examples
Example 1: Unauthorized Sharing of Policyholder Information
Introduction: John, a policyholder, recently purchased a health insurance policy from XYZ Insurance. During the application process, he provided personal information, including his medical history and contact details.
Application: According to Section 15(2) of the IRDAI Regulations, 2024, the information collected from John during the solicitation of his insurance policy cannot be shared with any third party without his explicit consent, except under specific circumstances such as statutory requirem
