CIRCULAR NO.IRDA/AGTS/GDL/CIR/060/04.2015, DATED 1-4-2015

GUIDELINES ON APPOINTMENT OF INSURANCE AGENTS 2015 – INSTRUCTIONS TO INSURERS

CIRCULAR NO.IRDA/AGTS/GDL/CIR/060/04.2015DATED 1-4-2015

The Guidelines on Appointment of Insurance Agents 2015 which has come into effect from 01.04.2015 empowers Insurers to appoint agents w.e.f 01-04-2015.

In this regard, upon considering the requests of insures, the following instructions are issued :—

I. Board Approved Policy : Para No. XVII (1) of captioned guidelines mandates insurers to formulate a Board Approved Policy outlining conditions pertaining to Agents Qualification, Training, Benefits, etc. for appointment of Insurance Agents and file the same with the Authority by 31-03-2015. It has been informed to the Authority by Insurers that their Board Meetings are scheduled in the first quarter of 2015-16; and requested for:

(a) extension of time for filing the Board Approved policy with the Authority, and
(b) permission to appoint agents as per the provisions of the Guidelines on Appointment of Insurance Agents 2015 in the interregnum.

II. The Competent Authority has considered the request of the Insurers and decided as under:

(a) Insurers are granted time limit up to 30-6-2015 to file the Board Approved Policy for 2015-16. ‘
(b) Insurers are permitted to appoint Agents in terms of the Guidelines on Appointment of Insurance Agents 2015 in the interregnum upto 30-6-2015.
(c) Insurers shall appoint agents in the interregnum in terms of Guidelines on Appointment of Insurance Agents 2015 and shall ensure that the applicant possesses minimum qualification and training as suggested in Annexure I of Guidelines on Appointment of Insurance Agents 2015
(d) Insurers who fail to file the Board Approved Policy by 30-6-2015 shall be barred from appointment of agents w.e.f 01-07-2015.

III. Insurance Agency Examination: Para No.VI (1) of Guidelines on Appointment of Insurance Agents 2015 states as follows :—

“An applicant shall pass in the Insurance Agency Examination conducted by the Examination Body in the subjects of Life, General, and Health Insurance as the case may be, as per the syllabus prescribed by the Authority to be eligible for appointment as an insurance agent”.

a. The Agency Examination for appointment of Agents by Standalone Health Insurers (SAHI) will be in place by June 2015. SAHI are hence permitted to appoint agents based on passing the IC-34 examination till June 2015. The Appointment of Agents by SAHI w.e.f 01-07-2015 shall be subject to passing the Health Insurance examination prescribed by the Authority.
b. The Agency Examination for appointment of Agents by Mono-line Insurers shall be based on the IC-34 till further instructions.

IV. Agency Appointment Letter and Identity Card: Para No. XVIII (1) & (2) of the guidelines states as follows:

(1) Insurance agents holding a valid license issued by the Authority to act as insurance agents of different insurers and agents whose licenses are tagged to standalone health insurers/Agriculture Insurance Company Ltd. under special permission granted by the Authority to Standalone Health Insurers/AIC of India shall be deemed to have been appointed by the respective insurers, and shall continue to operate as insurance agents of the respective Standalone Health insurers /AIC of India.
(2) The Designated Official of insurer shall recover the agency license and identity cards issued on behalf of the Authority to the agent before commencement of these Guidelines, and issue the agents, appointment letters and fresh identity cards under these guidelines within 90 days of commencement of these Guidelines.
a. SAHI and Mono-Line Insurers: The Authority had authorised Standalone Health Insurers (SAHI) and Mono-line Insurers to utilise the services of Insurance Agents of other Life/Non Life Insurers without actually granting any license. This authorisation was valid upto 31-03-2015 only.
b. SAHI and Mono-line insurers shall issue appointment letters and identity cards to all agents on rolls as on 31-03-2015 and file a soft copy of the appointment letter with IRDAI for the purpose of record. The said task shall be completed by SAHI within 90 days from 01.04.2015 to enable agents to produce the identity card/appointment letter to any prospect/customer on demand as mentioned in the code of conduct.
c. Appointment of New Agents by SAHI and Mono-line insurers w.e.f 01-04-2015 shall be subjected to condition mentioned at III above.
d. Life and Non-Life Insurers: Life and Non-Life Insurers may issue appointment letters and identity cards to all agents as on 31-03-2015 and file a soft copy of the appointment letter with IRDAI for the purpose of record. The said task shall be completed by the them within 90 days from 01.04.2015, to enable agents to produce the identity card/appointment letter to any prospect/customer on demand as mentioned in the code of conduct.

The instructions are issued with approval of the Competent Authority.