Insurance regulator has barred micro-insurance agent to employ specified person working for another micro-insurance agent
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.
The regulator has also barred micro-insurance agents from employing the specified person working for another micro-insurance agent.
It has said licensed individual insurance agents, specified persons of licensed corporate agents and employees of insurance brokers cannot be employed as specified persons of micro insurance agents.
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.
Insurance regulator had directed life insurers to file 'product planner' every financial year