All insurers will have to advertise their full annual report in two newspapers. Balance sheets of insurers are public documents and insurers cannot deny a copy of the same, he says when queried about making insurers publish their abridged accounts, actuarial valuation reports and expense ratios on the proposal forms.

In the recent past, a slew of deposit accepting companies and non-banking financial companies had failed to do so, though they had filed returns with the Reserve Bank of India that were not accessible to the public in a timely fashion. As much as the insurer is concerned about the prospects background and health, so is the latter concerned about the financial health of the company.

An abridged balance sheet and actuarial valuation in the proposal form would help in reassuring the customer. In addition, IRDA could also consider making companies advertise quarterly and half-yearly results.

According to Rangachary, while IRDA is working for better disclosure norms by the companies, some of the statements filed with it by the latter are not for public scrutiny. For instance, statements relating to file and use products are privy to only IRDA.

Adding further he says IRDA has designed the accounting format in which the companies have to prepare its financial statements. The format is designed in such a way that the companies financial health is revealed. We can also send inspection teams to companies to check out the investments made by the insurers.

Earlier, speaking at a seminar on Transparency in Insurance Communication, organised by Prime Point Foundation, Chennai, he said IRDA will soon notify the Insurance Regulatory and Development Authority (Protection of Policyholders Interest) Regulations, 2002, which is applicable for life and non-life insurers. Breach of this regulation will be termed as breach of IRDAs directions and will invite penalties from insurers.

On the issue of fast and transparent manner of settling claims, IRDA plans to stipulate non-life insurers to appoint a surveyor within 72 hours of claim intimation by the policyholder. A copy of the survey report should be given to the policyholder. This will force the surveyors and insurers to speed up the survey and claim the settling process, he says.

But he ruled out setting up a policyholders protection fund, as insurers are reluctant to contribute towards the corpus. Their argument is that companies are sufficiently capitalised and if at all any company fails then others can jointly bail out the problem company. IRDA is planning to allow payment of premium via credit card and other means like the Internet. Currently, premium is to be paid in cash or by cheque or demand draft.

Prime Point Foundation founder and managing trustee K Srinivasan suggests setting up an advisory committee by IRDA to review and improve disclosure norms by insurers. The committee may consist of consumer representatives, financial journalists, advertising and public relations professionals.

Citing one instance of how insurers violate the regulations under the regulators nose, he says the e-mail addresses provided by some companies on IRDAs website is restricted in nature. Mails sent to those addresses bounce back to the sender.

According to Srinivasan there should be a provision in IRDAs website for policyholders to make their complaints straight to the regulator as a measure of improving transparency in the insurance sector.