Irda rejects insurers plea to soften agents' norms

Insurance Regulatory and Development Authority has rejected the insurers' demand for relaxation of guidelines for corporate agent licences, but said the norms would not be enforced on existing licences till April 2007.

"In so far as issuance of new licences of corporate agents are concerned, there shall be no relaxation whatsoever of the guidelines dated July 14, 2005," Irda said in a circular issued to insurers.

Clause 7 of the new guidelines for corporate agents issued by Irda in July this year stated, "The chief insurance executive, the designated officer and other specified persons who will be employed by the applicant should be whole time employees of the applicant.

"At least one of the persons should have insurance qualification to the extent of FFII or AFII or such qualification or experience that Irda may at its sole discretion, consider adequate."

However, Irda said in case of existing licences that came up for renewal, Clause 7 of the guidelines would not be enforced till April 1, 2007, and the renewal would be provisional subject to review by that date.

"All other provisions of the circular shall be implemented in toto," it said. The regulator had received a number of representations from insurers seeking relaxation of the above guideline in respect of issuance of fresh licences, as well as renewal of existing licences on the ground that persons with FFII and AFII or equivalent qualifications were not readily available.