The Insurance Regulatory and Development Authority of India (IRDAI) has recently released new guidelines for the appointment of insurance agents, titled “Guidelines on Appointment of Insurance Agents, 2015”, making insurance agents’ businesses tougher. However, there is at least one reason for agents in the new guidelines to cheer- capping on agents’ commission has been lifted.
The Insurance Laws (Amendment) Ordinance has omitted Section 40A of the earlier Insurance Act, which was about a commission to insurance agents. Currently, the r
IRDAI New Guidelines would be Effective from April 1, 2015. Here are Key Points-
- The insurance company will directly recruit its agents after due verification of the applicant’s eligibility and authenticity.
- The insurance company will be liable for all acts and omissions by its agents.
- If the agent violates the code of conduct specified under the guidelines, the insurer will be liable to pay a penalty, a maximum up to Rs. 1 crore.
- Now, since the insurer will have to pay penalties in case its agents violate the code of conduct and penalties are very high, insurers may apply stiff checks on agents.
- An individual can now act as an insurance agent for only one life insurer, one general insurer, one health insurer, and one monoline insurer.
- If an agent acts against the provision of the Act, he/she will be liable to pay a penalty, maximum up to Rs. 10,000.
- Commission-based sales of insurance products might virtually come to an end.
- Proposal of maintaining a centralized database of agents.
- Centralized database of agents whose appointment is canceled/suspended by any insurance firm for violation of the code of conduct and/or fraud in order to stop them from getting jobs in any other agencies dealing in the insurance business.
- If an agent represents more than one insurance player with the same line of products, he/she should dispassionately advise customers on the products of all insurance companies.
- IRDAI to appoint ‘investing officer’ who will keep eyes on acts of insurance agents.
- Although the detailed regulation on remuneration is yet to be announced, it is expected that the commission will be distributed between the first, second, and third years, a step to ensure the agent does not sell policy only for first-year commission. It would help curb mis-selling.
IRDA continuously comes with new Norms.
Well, the upper norms are about the insurance agent, which means having a perfect agent for every insurance company is a basic demand, and IRDA just pushing their norms to make this sector more useful and more impactful. In the terms of customer serving, in terms of insurance company’s benefits, and in terms of getting a good commission on policy. Having, a good insurance agent is like a blessing because with the help of an agent you will get the policy as per your requirement. IRDAI always keeps its finger on and keeps on coming up with new rules as per the need, and sometimes IRDA comes with laws to keep the customer their priority.
In era of Covid-19, the whole world was grieving due to the fear of Covid-19, and in this situation the survival of people was a question. Getting lockdown, was only way to protect themselves from virus. Covid-19 had made people understand the importance of the policy, and at this time the policy was like a support for the people because money is very important for getting treatment in private hospitals. Even beds are not available in hospital during Covid-19 pandemic.
In these days, IRDA comes up with new norms for the mass audience keeping in mind the customer needs, all general and standalone health insurers are required to offer individual Covid standard health policy “Corona Kavach Policy”. To fight against COVID-19, IRDA has come up with a new policy and urges that every health insurer should offer a “Corona Kavach Policy”. IRDA always comes with, something new that is requirement of people, or people are looking for that particular subject. The one thing that IRDA knows very well is, they are here for helping people, and always keep eye on what the public want. Public interest is, first thing that IRDA always providing and capturing as well.