New IRDA guidelines for cpte agents

July 13th, 2010 | Category: News and Analysis, Regulation | No Comments » Email This Post Email This Post
Insurance Regulatory and Development Authority (IRDA) has put out new guidelines on issue and renewal of licences to Corporate Agents.
In a circular to all insurance companies dated June 28, IRDA has said that all corporate agency licenses given or renewed by an insurance company has to be with the prior approval of IRDA. The Corporate Compliance Officer of the insurance company, who is to be designated as the Corporate Designated Person of the insurer for this purpose, should fill and sign a Checklist cum Certificaton  for each such licence to be submitted by email to IRDA. Following this IRDA would approve or reject the application within seven working days, says the circular.
Earlier in the month IRDA had set out new rules for inspection of corporate agents by their principals, the insurers, in order to curb irregularities.
Insurers are now required to carry out regular, on-site inspections of the corporate agents with whom they have an agreement, and this shold be completed by September 30 every year starting from 2010.
The insurers should ensure that the policies were being sold only by licensed agents or specified persons and there should be no payments other than permissible commissions. The circular setting out these rules also observed that  in many cases  the same set of individuals had floated several firms to act as corporate agents in violation of norms and that some corporate agents were deploying unqualified people without agency licences to sell insurance and were paying them commissions.
For transfer of corporate agency from one insurer to another, IRDA has specified that apart from issuing a no-objection certificate to the agent/corporate agent who was leaving, insurers should ensure that the corporate agents should be appointed only by the Chief Executive Officer/Chief Financial Officer/Chief marketing and sales officer or a person designated for the purpose by the board.

Insurance Regulatory and Development Authority (IRDA) has put out new guidelines on issue and renewal of licences to Corporate Agents.In a circular to all insurance companies dated June 28, IRDA has said that all corporate agency licenses given or renewed by an insurance company has to be with the prior approval of IRDA. The Corporate Compliance Officer of the insurance company, who is to be designated as the Corporate Designated Person of the insurer for this purpose, should fill and sign a Checklist cum Certificaton  for each such licence to be submitted by email to IRDA. Following this IRDA would approve or reject the application within seven working days, says the circular.Earlier in the month IRDA had set out new rules for inspection of corporate agents by their principals, the insurers, in order to curb irregularities.Insurers are now required to carry out regular, on-site inspections of the corporate agents with whom they have an agreement, and this shold be completed by September 30 every year starting from 2010.The insurers should ensure that the policies were being sold only by licensed agents or specified persons and there should be no payments other than permissible commissions. The circular setting out these rules also observed that  in many cases  the same set of individuals had floated several firms to act as corporate agents in violation of norms and that some corporate agents were deploying unqualified people without agency licences to sell insurance and were paying them commissions. For transfer of corporate agency from one insurer to another, IRDA has specified that apart from issuing a no-objection certificate to the agent/corporate agent who was leaving, insurers should ensure that the corporate agents should be appointed only by the Chief Executive Officer/Chief Financial Officer/Chief marketing and sales officer or a person designated for the purpose by the board.

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