CLARIFICATIONS ON IRDAI (REGISTRATION OF INSURANCE MARKETING FIRM) REGULATIONS, 2015
CIRCULAR NO.IRDA/INT/CIR/IMF/041/03/2016, DATED 2-3-2016
Pursuant to notification of Insurance Regulatory and Development Authority of India (Registration of Insurance Marketing Firm) Regulations, 2015 (hereinafter referred as IMF regulations), Authority is in receipt of applications for granting registration as IMF through our portal www.imf.irda.gov.in from various applicants. Applications are processed through online as part of e-governance initiative of IRDAI. On getting queries from various stakeholders, the following clarifications are issued:
|Regulation 3(a) and regulation 11(1) stipulate IMFs to have tie-ups with two life, two general and two health insurance companies at any point of time. However, such requirement may act as an entry barrier for the applicants and also involve lot of time to have tie-up with six insurers, as reported. Therefore, it is decided that IMFs need not compulsory tie-up with two life, two general and two health insurance companies. No Insurance Company shall restrict IMF from having tie-up with other Insurance Companies.
|As per the Part I (2) of Schedule IV of the IMF Regulations, the remuneration payable to IMF by the Insurer, for the solicitation of policies by the ISPs shall be as specified by the Authority, from time-to-time, under sections 40(1) and 40(2) of the Act as amended from time-to-time. In this regard, it is hereby clarified that the remuneration payable to the IMF by the insurer for solicitation of policies by the ISPs shall be treated as per the same terms of remuneration applicable to the Brokers for the existing products. Insurers may specify the remuneration structure for IMF as an intermediary in the products which they file hereinafter,
The above clarifications are issued under the powers vested with the Authority in section 14(2) of IRDA Act, 1999 read with regulation 28 of IMF Regulations.