Inus Corp Agent & Brk

8/8/2019 Inus Corp Agent & Brk

1/21

IRDA (Licensing of Corporate Agents)Regulations, 2002IRDA (Insurance Brokers) Regulations,

2002


2/21

Notified on 16th October, 2002


3/21

Person

a firm; or

a company formed under the Companies Act, 1956, or

a banking company; or a regional rural bank

a co-operative society including a co-operative bank, or

a panchayat or a local authority; or

a NGO or a micro lending finance organization; or

any other institution or organization specifically approved

by IRDA


4/21

Corporate Insurance Executive

in the case of a company or firm, a director or a partner

or one or more of its officers or employees sodesignated by it,

in the case of any other person, the chief executive, by

whatever name called, or one or more of his employees

designated by him,

who possesses the requisite qualifications and practical

training and who have passed the qualifying

examination.


5/21

Specified Person

a director or a partner or one or more of its officers or

other employees so designated by the corporate agentand, in the case of any other person, the chief executive,

by whatever name called, or one or more of the

employees designated by him, who has undergone the

practical training, examination, certification and who isresponsible for soliciting and procuring insurance

business on behalf of the Corporate Agent;


6/21

Designated person

an officer normally in charge of marketing operations, as specified by

an insurer, and authorized by the Authority to issue or renew licenses

under these regulations

Certification

the process by which a Specified Person of the Corporate Agent, who

has successfully undergone practical training and passed the required

examination, is issued a Certificate entitling him to solicit and procureinsurance business on behalf of the Corporate Agent.


7/21

Partnership Deed, Memorandum of Association or any other documentevidencing the constitution of the entity shall contain as one of itsmain objects soliciting or procuring insurance business as a CorporateAgent

The corporate insurance executive shall possess the minimum

qualification of a pass in 12th Standard or equivalent examinationconducted by any recognised Board/Institution, where the applicantresides in a place with a population of five thousand or more as per thelast census, and a pass in 10th Standard or equivalent examinationfrom a recognised Board/ Institution if the applicant resides in any

other place A specified person shall possess the minimum qualifications stipulated

in sub-regulation (2) above Every corporate insurance executive and each of the specified persons

shall also not suffer from any of the disqualifications specified underSection 42D of the Act


8/21

Corporate insurance executive/ Specified person to undergo 50 hours

practical training from an approved institution

25 hours practical training in case of:

an Associate/Fellow of the Insurance Institute of India, Mumbai;

an Associate/Fellow of ICAI

an Associate/Fellow of ICWAI

an Associate/Fellow of ICSI

an Associate/Fellow of the Actuarial Society of India, Mumbai;

a MBA of any recognised Institution / University

Every specified person of the corporate agent shall, apply through the

corporate agent to the designated person of the insurer to obtain the

certificate, accompanied by a fees of rupees five hundred remitted to the

Authority


9/21

EVERY CORPORATE AGENT SHALL:

be responsible for all acts of omission and commissionof its corporate insurance executive and every specifiedperson;

ensure that the corporate insurance executive and allspecified persons are properly trained, skilled andknowledgeable in the insurance products they market;

ensure that the corporate insurance executive and thespecified person do not make to the prospect any

misrepresentation on policy benefits and returnsavailable under the policy;

ensure that no prospect is forced to buy an insuranceproduct;


10/21

EVERY CORPORATE AGENT SHALL: continued

give adequate pre-sales and post-sales advice to theinsured in respect of the insurance product.

extend all possible help and cooperation to an insured incompletion of all formalities and documentation in theevent of a claim.

give due publicity to the fact that the corporate agent

does not underwrite the risk or act as an insurer. enter into service level agreements with the insurer in

which the duties and responsibilities of both aredefined.


11/21

Every corporate agent/ corporate insurance executive/

specified person shall:

(a)(a) identify himself and the insurance company of whom he is aidentify himself and the insurance company of whom he is arepresentative;representative;

(b)(b) disclose his licence/ certificate to the prospect on demand;disclose his licence/ certificate to the prospect on demand;

(c)(c) disseminate the requisite information in respect of insurancedisseminate the requisite information in respect of insuranceproducts offered for sale by his insurer and take into account theproducts offered for sale by his insurer and take into account theneeds of the prospect while recommending a specific insurance plan;needs of the prospect while recommending a specific insurance plan;

(d)(d) disclose the scales of commission in respect of the insurancedisclose the scales of commission in respect of the insuranceproduct offered for sale, if asked by the prospect;product offered for sale, if asked by the prospect;

(e)(e) indicate the premium to be charged by the insurer for theindicate the premium to be charged by the insurer for theinsurance product offered for saleinsurance product offered for sale


12/21

Every corporate agent/ corporate insurance executive/specified person shall:

(f) explain to the prospect the nature of information requiredin the proposal form by the insurer, and also the importance of

disclosure of material information in the purchase of an insurancecontract;

(g) bring to the notice of the insurer any adverse habits orincome inconsistency of the prospect, in the form of a report(called Insurance Agents Confidential Report) along with everyproposal submitted to the insurer, and any material fact that may

adversely affect the underwriting decision of the insurer as regardsacceptance of the proposal, by making all reasonable enquiriesabout the prospect;

(h) inform promptly the prospect about the acceptance orrejection of the proposal by the insurer;


13/21

Every corporate agent/ corporate insurance executive/

specified person shall:

(i) obtain the requisite documents at the time of filing theproposal form with the insurer; and other documents subsequentlyasked for by the insurer for completion of the proposal;

(j) render necessary assistance to the policyholders orclaimants or beneficiaries in complying with the requirements forsettlement of claims by the insurer;

(k) advise every individual policyholder to effect nomination orassignment or change of address or exercise of options, as the casemay be, and offer necessary assistance in this behalf, wherevernecessary;


14/21

No corporate agent/ corporate insurance executive/specified person shall,----

(a) solicit or procure insurance business without holding a validlicence/ certificate;

(b) induce the prospect to omit any material information in theproposal form;

(c) induce the prospect to submit wrong information in theproposal form or documents submitted to the insurer foracceptance of the proposal;

(d) behave in a discourteous manner with the prospect;

(e) interfere with any proposal introduced by any otherspecified person or any insurance intermediary;

(f) offer different rates, advantages, terms and conditionsother than those offered by his insurer;


15/21

No corporate agent/ corporate insurance executive/specified person shall,----

(g) demand or receive a share of proceeds from the beneficiaryunder an insurance contract;

(h) force a policyholder to terminate the existing policy and toeffect a new proposal from him within three years from the date ofsuch termination;

(i) No corporate agent shall have a portfolio of insurancebusiness from one person or one organization or one group oforganizations under which the premium is in excess of fifty percentof total premium procured in any year;

(j) apply for fresh licence to act as an insurance agent, if hislicence was earlier cancelled by the designated person, and aperiod of five years has not elapsed from the date of suchcancellation;

(k) become or remain a director of any insurance company;


16/21

Was notified and came into effect on 16th October,

2002

Insurance Broker a person, who for aremuneration, arranges insurance contracts with

insurers or re-insurers on behalf of his clients Direct Broker: an insurance broker who acts either in the field of life

insurance / general insurance or both

Reinsurance Broker: an insurance broker who arranges re-insurance

for insurers

Composite Broker: an insurance broker who arranges insurance for his

clients with insurers / re-insurers


17/21

An individual

A firm A company

A co-operative society

An y other person recognized by IRDA


18/21

CATEGORY MINIMUM CAPITAL (Rs.)

Direct Broker 50,00,000

Re-insurance Broker 2,00,00,000

Composite Broker 2,50,00,000


19/21


20/21

providing requisite underwriting information acting promptly on instructions from a client and

providing him written acknowledgements andprogress reports assisting clients in paying premium providing services related to insurance consultancy

and risk management assisting in the negotiation of the claims maintaining proper records of claims


21/21

rendering advice based on technical data on the

reinsurance covers available in the international insuranceand the reinsurance markets

rendering consultancy and risk management services forreinsurance

selecting and recommending a reinsurer or a group ofreinsurers

negotiating with a reinsurer on the clients behalf collecting and remitting premiums

assisting in the negotiation and settlement of claims

Documents

Inus Corp Agent & Brk