Insurance Regulatory and Development Authority (Irda) today clarified entities already licensed for soliciting the insurance business or appointed as referral company are not eligible to be appointed as micro-insurance agents.
According to existing regulations, district cooperative banks, regional rural and urban co-operative banks, primary agricultural cooperative societies, companies appointed as banking correspondents and individual owners of kirana shop, medical shop, petrol bunk and PCOs in rural areas are allowed to act as micro-insurance agents.
Irda said a specified person who resigns from a micro-insurance agent is eligible for appointment with another micro-insurance agent or other corporate agent only after three months from the date of resignation.
Insurers have been asked to carry out due diligence before appointing micro-insurance agents, in terms of their reputation and track record. These norms come into force with immediate effect.