 "Irdai tweaks norms for insurance marketing firms")
The Insurance Regulatory and Development Authority of India (Irdai) has said insurance marketing firms can procure products from two insurers each from the life, general and health categories, giving due intimation to the regulator.
Insurance marketing firms solicit and procure insurance as well as financial products. These firms employ licensed personnel who are authorised to sell and distribute insurance and other financial products.
The net worth of a insurance marketing firm has to be at least Rs 10 lakh. According to Irdai, insurance marketing firms should take adequate steps for redressal of client grievances within 15 days of a complaint has been made. These firms can’t undertake multi-level marketing. Registration of such a firm is valid for three years. In case Irdai suspends or cancels registration, the firm cannot solicit new insurance business.
An insurance marketing firm will have a financial service executive and an insurance sales person. The former is an individual employed by the firm, holding a valid licence issued by respective financial regulators to market mutual funds, pension products, etc. The latter will have a certificate issued by Irdai to sell insurance products.
Insurance marketing firms solicit and procure insurance as well as financial products. These firms employ licensed personnel who are authorised to sell and distribute insurance and other financial products.
The net worth of a insurance marketing firm has to be at least Rs 10 lakh. According to Irdai, insurance marketing firms should take adequate steps for redressal of client grievances within 15 days of a complaint has been made. These firms can’t undertake multi-level marketing. Registration of such a firm is valid for three years. In case Irdai suspends or cancels registration, the firm cannot solicit new insurance business.
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However, it can continue to service existing customers for six months within which suitable arrangements have to be made. In such cases, it can rope in another insurance marketing firm to operate in that jurisdiction.
An insurance marketing firm will have a financial service executive and an insurance sales person. The former is an individual employed by the firm, holding a valid licence issued by respective financial regulators to market mutual funds, pension products, etc. The latter will have a certificate issued by Irdai to sell insurance products.