🔎 What Do We Mean by Ethical Selling?

Ethical selling means offering insurance products that genuinely match the customer’s needs, with complete transparency about benefits, costs, exclusions, and processes.

👉 It’s not about pushing a policy—it’s about being a trusted advisor.

📜 Code of Conduct for Agents (As per IRDAI & IC-72)

1. Transparency in Operations

   • Disclose all terms, conditions, inclusions, and exclusions clearly.

   • Provide brochures/prospectus with complete product details.

2. Objective Information

   • Present facts without bias or personal gain.

   • Avoid hiding limitations or exaggerating benefits.

3. Customer Need Analysis

   • Recommend covers based on customer’s risk profile, not commission value.

   • For example, suggest a Comprehensive Policy with add-ons to a new car owner, not just Third-Party cover.

4. Prompt Service

   • Submit proposal forms and premium immediately.

   • Deliver policy copies on time.

5. Knowledge & Expertise

   • Be well-versed in product features, claim process, and add-ons.

   • Keep customers updated about premium changes, regulatory updates, or renewals.

6. Protect Against Moral Hazard

   • Provide accurate information about customer’s past losses, vehicle condition, and risk factors.

🚫 Unethical Selling Practices to Avoid

• Misrepresenting product scope (“Sir, all damages will be covered” when exclusions apply).

• Hiding deductibles, exclusions, or waiting periods.

• Delaying policy issuance to hold money longer.

• Pushing unnecessary add-ons or covers just to increase commission.

• Not assisting customers during claims.

✅ Example: Ethical vs. Unethical Selling

• Unethical Approach:
  Agent sells only a Third-Party policy to a customer buying a new car, just to keep premium low and close the deal quickly. Later, the car is damaged in an accident and customer gets no OD coverage → customer loses trust.
  

• Ethical Approach:
  Agent explains both Third-Party (mandatory) and Comprehensive (recommended) covers. He also suggests Zero Depreciation add-on for a new car. Customer pays more premium but gets full protection → customer becomes loyal and refers others.
  

💡 Benefits of Ethical Selling

• For Customers: Right protection, fewer disputes, smoother claims.

• For Agents: Stronger reputation, higher renewals, referrals, and long-term income.

• For Industry: Higher trust in insurance, less mis-selling, stronger compliance.

🎯 Conclusion

Ethical selling is not just a rule—it’s a business strategy for success. Agents who prioritize honesty and customer needs build lasting trust and grow faster than those chasing quick sales.

👉 Pitch Line for Agents:
“Sell what’s right, not just what’s easy. Ethical selling today builds the loyal customer base of tomorrow.”