The Insurance Regulatory and Development Authority of India on Tuesday brought out an exposure draft for appointment of insurance agents. The regulator has asked insurers to check whether the prospective agent has been black-listed before he/she is appointed.
No insurer shall, on or after the commencement of the Insurance Law Amendment Ordinance-2014 appoint any Principal Agent, Chief Agent, and Special Agent and transact any insurance business through them. The regulator said no person shall allow or offer to allow to any person to take out or renew or continue an insurance policy through multilevel marketing scheme.
The designated official of each insurer has to exercise due diligence in verifying the agency application form and ascertaining from the applicant that he/she does not hold agency appointment with more than one life insurer, one general insurer, one health insurer and one of each of the mono-line insurers.
The draft said that no individual shall act as an insurance agent for more than one life insurer, one general insurer, one health insurer and one of each of other mono-line insurers.
An applicant seeking appointment as a 'Composite Insurance Agent', has to make separate applications to the designated official of respective life, general, health insurance companies or mono line insurance companies as the case may be.
Every agent has to pass an insurance agency examination as earlier. The pass certificate issued by the Examining body would be valid for a period of twelve months only.
IRDAI has also set up a code of conduct for all insurance agents which states that they should sell as per customer's needs, show accurate premium. Further, they are also required to ring to the notice of the insurer any adverse habits or income inconsistency of the prospect, in the form of a report called "Insurance Agent's Confidential Report" along with every proposal submitted to the insurer. The last date for submitting comments on this draft by stakeholders is February 5, 2015
No insurer shall, on or after the commencement of the Insurance Law Amendment Ordinance-2014 appoint any Principal Agent, Chief Agent, and Special Agent and transact any insurance business through them. The regulator said no person shall allow or offer to allow to any person to take out or renew or continue an insurance policy through multilevel marketing scheme.
The designated official of each insurer has to exercise due diligence in verifying the agency application form and ascertaining from the applicant that he/she does not hold agency appointment with more than one life insurer, one general insurer, one health insurer and one of each of the mono-line insurers.
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If there is an applicant who is aggrieved by the decision of the designated official regarding refusal of granting insurance agency, they can submit a review application to the insurer for review the decision. The insurer shall consider the review application of the applicant and communicate the final decision within 15 days of receipt of the review application from the applicant.
The draft said that no individual shall act as an insurance agent for more than one life insurer, one general insurer, one health insurer and one of each of other mono-line insurers.
An applicant seeking appointment as a 'Composite Insurance Agent', has to make separate applications to the designated official of respective life, general, health insurance companies or mono line insurance companies as the case may be.
Every agent has to pass an insurance agency examination as earlier. The pass certificate issued by the Examining body would be valid for a period of twelve months only.
IRDAI has also set up a code of conduct for all insurance agents which states that they should sell as per customer's needs, show accurate premium. Further, they are also required to ring to the notice of the insurer any adverse habits or income inconsistency of the prospect, in the form of a report called "Insurance Agent's Confidential Report" along with every proposal submitted to the insurer. The last date for submitting comments on this draft by stakeholders is February 5, 2015