Title: Exposure Draft
Reference No.: --
IRDAI (REGISTRATION OF CORPORATE AGENT) REGULATIONS, 2015, May 2015
Consequent upon promulgation of Insurance Laws (Amendment) Act, 2015, the Authority had issued an exposure draft on corporate agency regulations on 31st March, 2015 seeking comments from the stakeholders till 24th April, 2015. Based on the feedback received, changes are being proposed in the draft regulations and a second exposure draft inviting comments is enclosed. The second exposure draft contains the following changes:
1. The corporate agents instead of having tie-ups with a minimum of two insurers may now choose from one to a maximum of three insurers in any particular line of insurance business.
2. The capping of insurance business with an insurance company has been removed. Instead the corporate agent shall file, at the time of seeking registration, with the Authority a Board Approved Policy on the manner of soliciting and servicing insurance products.
3. The Policy shall address the manner of adopting the philosophy of open architecture and going forward in implementing the same. The Policy, amongst others, shall include the approach to be followed by the corporate agent in having single or multiple tie-ups, the partners in the tie-ups, the business mix, the type of products sold, grievance redressal mechanism and reporting requirements.
4. The corporate agents are permitted to sell group insurance policies.
5. A corporate agent already licensed under the IRDA’s (Licensing of Corporate Agents) Regulations, 2002 is exempt from obtaining a No Objection Certificate from the sectoral regulator at the time of seeking registration under these regulations.
6. A corporate agent whose revenues from their insurance intermediation activities is more than fifty per cent of their total revenue from all the activities,shall take out a professional indemnity insurance cover throughout the validity of the period of the registration granted to it by the Authority. However those with less than 50% are not required to take the PI policy.
7. In case of a corporate agent where insurance distribution is anciliary to their main business, there is no requirement for maintaining separate books of accounts. However segment-wise reporting is specified.
All are requested to offer their comments/ suggestions on the proposed regulations for consideration of the same by the department. The comments/ suggestions in MS-WORD format should reach us by 4th June, 2015 in the format attached to the undersigned by e-mail at randip at irda dot gov dot in and to to my colleague Mr. D.S. Murthy, Senior Assistant Director (e-mail: dsmurthy at irda dot gov dot in)
(Randip Singh Jagpal)
Sr. Joint Director