The IRDAI (Insurance Regulatory and Development Authority of India) has framed new regulations. As per the same, a corporate insurance agent be it life, non-life or health, can have three firms. Each of these firms is to solicit, procure as well as service their products related to insurance.
The new regulations are as follows.
- A corporate agent of life can have arrangements with at most three life insurers to solicit, procure as well service their products related to insurance.
- A corporate agent of general insurance can have arrangements with at most three life insurers to solicit, procure as well service their products related to insurance.
Furthermore, a general corporate agent can solicit, procure as well as service the retail lines of the insurance products as well as commercial lines of the insurers. Such insurers should have an overall insured sum of Rs 5 crore or lesser per risk combining all the insurances.
The applicants who are exclusively into the insurance distribution can have an equity share capital or involvement and overall worth of minimum Rs 50,000,000. They can maintain the overall worth at all times, clarified the regulator.
The corporate agent with tie-ups with over one insurer has to disclose the list of insurers to the potential customer. The list of insurers has to be the ones with whom it has made arrangements to distribute the products and give away all the other details. These details include the term of policy, scope of coverage, premium payable and other details that the customer looks out for.
The corporate agents have to disclose the level of commission in terms of the offered insurance product.
The CFO and Principal Officer or the equivalent of the corporate agent can file a certificate with an authority in the format that is given on a half-yearly basis. This certifies that there is no compulsion in selling an insurance product to anyone.
The registration of any corporate agent can be suspended or cancelled without prior notice. This is possible given that authority has conveyed the reasons for the same to the corporate agent in writing.
