Why was IRDA sleeping?

While finance minister P Chidambaram publicly admonishing insurance firms for mis-selling life policies has put the focus on a problem many policyholders can testify to, what’s not clear is why the insurance regulator has done little about this. It’s not as if the Insurance Regulatory Development Authority (IRDA) has been caught unawares; it has been flagging the issue regularly in its annual reports. IRDA’s analysis shows mis-selling or unfair business practices jumped from 7.6% of total customer complaints in the life insurance industry in 2009-10 to 32% in 2011-12.

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