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Insurers will have to specifically state that market-linked insurance plans are different from traditional endowment policies and carry risks. Likewise, participating (with bonus) endowment policies will have to state upfront that the bonuses projected in benefit illustrations are not guaranteed. All the advertisements of linked insurance products and annuity products with variable annuity payout option shall disclose the risk factors, it said.
“All insurers shall advertise the launch of unit-linked funds or index-linked funds under existing insurance products or new insurance products, only with reference to the underlying life insurance coverage and the products associated with it. “Further, no press release or statement shall be issued by the insurer without making a reference to the life insurance coverage and the associated products,” the master circular said.
Besides, advertisements for all linked and annuity products with variable payouts must comply with the standards set by the Advertising Standards Council of India, it added.