Corp agent can now tie up with 3 insurers to service products

A corporate insurance agent of life, non-life and health can have arrangements with a maximum of three companies each to solicit, procure and service their insurance products, according to new regulations by Insurance Regulatory and Development Authority of India (IRDAI).
"(A) A corporate agent (life) may have arrangements with a maximum of three life insurers to solicit, procure and service their insurance products. (B) A corporate agent (general) may have arrangements with a maximum of three general insurers to solicit, procure and service their insurance products," IRDAI has said in its new regulations released last night.
"Further, a corporate agent (general) shall solicit, procure and service retail lines of general insurance products and commercial lines of such insurers with a total sum insured not exceeding Rs 5 crore per risk for all insurances combined."

The applicants which are exclusively into insurance distribution shall have a minimum equity share capital or contribution and net worth of Rs 50,00,000 and they shall maintain net worth at all times, the regulator clarified.
The corporate agent having tie-ups with more than one insurer needs to disclose to the prospective customer the list of insurers with whom it has arrangements to distribute products and provide them with other details, including scope of coverage, term of policy, premium payable and any other information the customer seeks.
The corporate agents also need to disclose the scale of commission in respect of the insurance product offered, if asked, IRDAI said.

"The Principal Officer and CFO (or its equivalent) of the corporate agent shall file with the authority a certificate in the format given in the Schedule VIII on half-yearly basis, certifying that there is no forced selling of an insurance product to any prospect," it further said.
The registration of a corporate agent may be cancelled or suspended without notice, provided the authority has communicated to the corporate agent the reasons thereof in writing, the new regulations said.