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IRDA Provisions relating to licensing of Insurance Agents and Insurance Intermediaries

IRDA Provisions relating to licensing of Insurance Agents and Insurance Intermediaries

An Insurance Agent is a person who, after obtaining a licence from IRDA, is authorized to solicit or procure insurance business on behalf of one Insurance Company with whom the Agent is attached. An Insurance Broker is an intermediary, licensed by IRDA to solicit or procure insurance business on behalf of any insurer.

While an Agent represents an insurance company with whom he is attached, an Insurance Broker represents customers. An Agent can be an individual agent or a Corporate Agent – meaning a Partnership Firm or a Company acting as an Agent.

Section 42 provides for the eligibility conditions for obtaining a licence by an insurance agent, the disqualifications etc. A licence granted under this section is valid for a period of 3 years after which it can be renewed. Fees for renewal of licences have been prescribed. The disqualifications for a person to become an Agent are as follows:

(a) That the person is a minor

(b) That he is found to be of unsound mind by a Court of competent jurisdiction

(c) That he has been found guilty of criminal misappropriation or criminal breach of trust or cheating or forgery or similar acts of misconduct by a Court of competent jurisdiction.

[Post Image Courtesy of NayPong at FreeDigitalPhotos.net]

(d) That in the course of any judicial proceeding relating to policy of insurance or winding up proceedings of the insurer or in the course of investigation of affairs of the insurer by IRDA, t has been found that the agent has been guilty of or has knowingly participated in or connived at any fraud, dishonesty or misrepresentation against the insurer or an insured.

(e) That in the case of individual agent, he does not possess the requisite qualifications undergone practical training and passed the examinations as specified by IRDA or where the proposed agent is a Corporate agent, the persons authorised to sell on behalf to solicit or procure insurance business, does not possess the requisite qualifications, have not undergone the required practical training or passed the required examinations as prescribed by IRDA.

(f) That the agent violates the code of conduct prescribed under the regulations Section 41 prohibits offering of any rebates by anyone to customers as an inducement for purchase of an insurance policy or for continuance of an insurance policy or for reinstatement of a lapsed insurance policy.

Section 48A prohibits insurance agents of life insurance companies

Insurance Law And Practice - ICSI

About Author Mohamed Abu 'l-Gharaniq

when an unknown printer took a galley of type and scrambled it to make a type specimen book. It has survived not only five centuries.

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