Irda sets up committee for sub broking

Panel includes 11 members from life insurance council, general insurance council and Irda

The Insurance Regulatory and Development Authority (Irda) has set up a committee to consider sub broking in insurance. A total of 11 members with representatives from life insurance council, general insurance council and Irda have been made part of the committee.

Further, PC James, Chair Professor from National Insurance Academy, and two members from Insurance Brokers Association of India are part of this committee. In order to increase penetration of insurance in semi-urban and rural areas, Irda observed that the presence of intermediaries is essential.

"The issue of sub broking is under consideration of the authority for quite some time. After considerable deliberations on the issue of sub broking, it has been decided to constitute a committee to examine various issues relating to sub-broking and submit their report to the authority for consideration," said Irda in a notification.

 

The committee would consider introduction of a retail broking system in the insurance space in India. Further, it would also look into the manner in which retail broking system could operate as sub brokers and together with insurance brokers the manner in which these could be dovetailed with the Common Service Centres proposed to be set up by the Government of India.

Also, the committee would consider and recommend the draft agreement that should be entered into between the brokers and retail sub-brokers if such is the recommendation. The committee would submit its report by January 31, 2013.