Document Detail

Back

Title:

Reference No.: 1982_GI_2000_ENG

Date: 14/07/2000

IRDA (Licensing of Insurance Agents) Regulations, 2000

THE GAZETTE OF INDIA: EXTRAORDINARY PART III ---SEC. 4

INSURANCE REGULATORY AND DEVELOPMENT AUTHORITY, NEW DELHI

NOTIFICATION

New Delhi, the 14th July, 2000

Insurance Regulatory and Development Authority (Licensing of Insurance Agents) Regulations, 2000

F.No.IRDA/Reg./7/2000.--

In exercise of the powers conferred by sub-section (6) of section 42 and clauses (k), (l), (m), (n), (o) and (p) of sub-section (2) of section 114A of the Insurance Act, 1938 (4 of 1938), the Authority, in consultation with the Insurance Advisory Committee, hereby makes the following regulations, namely:-

1. Short title and commencement.--(1) These regulations may be called Insurance Regulatory and Development Authority (Licensing of Insurance Agents) Regulations, 2000.

(2) They shall come into force on the date of their publication in the Official Gazette.

2. Definitions.-In these regulations,unless the context otherwise requires, -

(a) “Act” means the Insurance Act, 1938 (4 of 1938);

(b) “Approved Institution” means an Institution engaged in education and/or training particularly in the area of insurance sales, service and marketing, approved and notified by the Authority;

(c) “Authority” means the Insurance Regulatory and Development Authority established under the provisions of Section 3 of the Insurance Regulatory and Development Authority Act, 1999 (41 of 1999);

(d) “Composite insurance agent” means an insurance agent who holds a licence to act as an insurance agent for a life insurer and a general insurer;

(e) “Corporate Agent” means a person other than an individual as specified in clause (i);

(f) “Designated person” means an officer normally in charge of marketing operations, as specified by an insurer, and authorised by the Authority to issue or renew licences under these regulations;

(g) “Examination Body” means an Institution, which conducts pre-recruitment tests for insurance agents and which is duly recognised by the Authority;

(h) “Licence” means a certificate of licence to act as an insurance agent issued under these regulations;

(i) “Person” means ---

(i) an individual;

(ii) a firm; or

(iii) a company formed under the Companies Act, 1956 (1 of 1956), and includes a banking company as defined in clause (4A) of section 2 of the Act;

(j) “Practical Training” includes orientation, particularly in the area of insurance sales, service and marketing, through training modules as approved by the Authority;

(k) “Proposal form” means an application for purchase of an insurance product which shall be the basis of insurance contract;

(l) “Prospect” means a potential purchaser of an insurance product;

(m) “Recognised Board or Institution” means such board or institution as may be recognised by any State Government or the Central Government.

(2) All words and expressions used herein and not defined but defined in the Insurance Act, 1938(4 of 1938), or in the Insurance Regulatory and Development Authority Act, 1999 (41 of 1999), shall have the meanings respectively assigned to them in those Acts.

3. Issue or renewal of licence.---(1) A person desiring to obtain or renew a licence (hereinafter referred to as “the applicant”) to act as an insurance agent or a composite insurance agent shall proceed as follows:-

(a) the applicant shall make an application to a designated person---

(i) in Form IRDA-Agents-VA, if the applicant is an individual;

(ii) in Form IRDA-Agents-VC, if the applicant is a firm or a company:

Provided that the applicant, who desires to be a composite insurance agent, shall make two separate applications.

(b) The fees payable by the applicant to the Authority shall be as specified in Regulation 7.

(2) The designated person may, on receipt of the application along with the evidence of payment of fees to the Authority, and on being satisfied that the applicant, ---

(i) possesses the qualifications as specified under Regulation 4;

(ii) possesses the practical training as specified under Regulation 5;

(iii) has passed the examination as specified under Regulation 6;

(iv) has furnished the application complete in all respects;

(v) has the requisite knowledge to solicit and procure insurance business; and

(vi) is capable of providing the necessary service to the policyholders;

grant or renew, as the case may be, a licence in Form IRDA-Agents-VB, along with identity card in Form IRDA-Agents-VZ:

Provided that in the case of a corporate agent, the identity card shall be in Form IRDA-Agent-VY.

Provided further that such identity card from one life insurer and such identity card from one general insurer shall be provided to the applicant seeking licence to act as a composite insurance agent.

Provided further that in the case of a firm or a company, all of its partners or directors, as the case may be, shall fulfil the requirements of sub-clauses (i) to (iii).

Provided further a licence issued in accordance with this regulation shall entitle the applicant to act as insurance agent for one life insurer or one general insurer or both, as the case may be.

(3) If the designated person refuses to grant or renew a licence under this regulation, he shall give the reasons therefor to the applicant.

4. Qualifications of the applicant.--- The applicant shall possess the minimum qualification of a pass in 12th Standard or equivalent examination conducted by any recognised Board/Institution, where the applicant resides in a place with a population of five thousand or more as per the last census, and a pass in 10th Standard or equivalent examination from a recognised Board/ Institution if the applicant resides in any other place.

5. Practical Training . --- (1) The applicant shall have completed from an approved institution, at least, one hundred hours’ practical training in life or general insurance business, as the case may be, which may be spread over three to four weeks, where such applicant is seeking licence for the first time to act as insurance agent.

Provided that the applicant shall have completed from an approved institution, at least, one hundred fifty hours’ practical training in life and general insurance business, which may be spread over six to eight weeks, where such applicant is seeking licence for the first time to act as a composite insurance agent.

(2) Where the applicant, referred to under sub-regulation (1), is---

(a) an Associate/Fellow of the Insurance Institute of India, Mumbai;

(b) an Associate/Fellow of the Institute of Chartered Accountants of India, New Delhi;

(d) an Associate/Fellow of the Institute of Company Secretaries of India, New Delhi;

(e) an Associate/Fellow of the Actuarial Society of India, Mumbai;

(f) a Master of Business Administration of any Institution / University recognised by any State Government or the Central Government; or

(g) possessing any professional qualification in marketing from any Institution / University recognised by any State Government or the Central Government--

he shall have completed, at least, fifty hours’ practical training from an approved institution.

Provided that such applicant shall have completed from an approved institution, at least, seventy hours’ practical training in life and general insurance business, where such applicant is seeking licence for the first time to act as a composite insurance agent.

(3) An applicant, who has been granted a licence after the commencement of these regulations, before seeking renewal of licence to act as an insurance agent, shall have completed, at least twenty-five hours’ practical training in life or general insurance business, as the case may be, from an approved institution.

Provided that such applicant before seeking renewal of licence to act as a composite insurance agent shall have completed from an approved institution, at least, fifty hours’ practical training in life and general insurance business.

6. Examination.—The Applicant shall have passed the pre-recruitment examination in life or general insurance business, or both, as the case may be, conducted by the Insurance Institute of India, Mumbai, or any other examination body.

7. Fees payable.-- (1) The fees payable to the Authority for issue or renewal of licence to act as insurance agent or a composite insurance agent shall be rupees two hundred and fifty.

(2) The additional fees payable to the Authority, under the circumstances mentioned in sub-section (3) of section 42 of the Act, shall be rupees one hundred.

8. Code of Conduct.----(1) Every person holding a licence, shall adhere to the code of conduct specified below:-

(i) Every insurance agent shall,---

(a) identify himself and the insurance company of whom he is an insurance agent;

(b) disclose his licence to the prospect on demand;

(c) disseminate the requisite information in respect of insurance products offered for sale by his insurer and take into account the needs of the prospect while recommending a specific insurance plan;

(d) disclose the scales of commission in respect of the insurance product offered for sale, if asked by the prospect;

(e) indicate the premium to be charged by the insurer for the insurance product offered for sale;

(f) explain to the prospect the nature of information required in the proposal form by the insurer, and also the importance of disclosure of material information in the purchase of an insurance contract;

(g) bring to the notice of the insurer any adverse habits or income inconsistency of the prospect, in the form of a report (called “Insurance Agent’s Confidential Report”) along with every proposal submitted to the insurer, and any material fact that may adversely affect the underwriting decision of the insurer as regards acceptance of the proposal, by making all reasonable enquiries about the prospect;

(h) inform promptly the prospect about the acceptance or rejection of the proposal by the insurer;

(i) obtain the requisite documents at the time of filing the proposal form with the insurer; and other documents subsequently asked for by the insurer for completion of the proposal;

(j) render necessary assistance to the policyholders or claimants or beneficiaries in complying with the requirements for settlement of claims by the insurer;

(k) advise every individual policyholder to effect nomination or assignment or change of address or exercise of options, as the case may be, and offer necessary assistance in this behalf, wherever necessary;

(ii) No insurance agent shall,----

(a) solicit or procure insurance business without holding a valid licence;

(b) induce the prospect to omit any material information in the proposal form;

(c) induce the prospect to submit wrong information in the proposal form or documents submitted to the insurer for acceptance of the proposal;

(d) behave in a discourteous manner with the prospect;

(e) interfere with any proposal introduced by any other insurance agent;

(f) offer different rates, advantages, terms and conditions other than those offered by his insurer;

(g) demand or receive a share of proceeds from the beneficiary under an insurance contract;

(h) force a policyholder to terminate the existing policy and to effect a new proposal from him within three years from the date of such termination;

(i) have, in case of a corporate agent, a portfolio of insurance business under which the premium is in excess of fifty percent of total premium procured, in any year, from one person (who is not an individual) or one organisation or one group of organisations;

(j) apply for fresh licence to act as an insurance agent, if his licence was earlier cancelled by the designated person, and a period of five years has not elapsed from the date of such cancellation;

(k) become or remain a director of any insurance company;

(iii) Every insurance agent shall, with a view to conserve the insurance business already procured through him, make every attempt to ensure remittance of the premiums by the policyholders within the stipulated time, by giving notice to the policyholder orally and in writing;

9. Cancellation of licence.--- The designated person may cancel a licence of an insurance agent, if the insurance agent suffers, at any time during the currency of the licence, from any of the disqualifications mentioned in sub-section (4) of section 42 of the Act, and recover from him the licence and the identity card issued earlier.

10. Issue of duplicate licence.---The Authority may issue a duplicate licence replace a licence lost, destroyed, or mutilated on payment a fee of rupees fifty.

11. Non-application to existing insurance agents. --- Nothing contained in Regulations 4 to 6 of these Regulations shall apply to the existing agents before the commencement of these Regulations.

FORM IRDA-AGENTS-VA

(See Regulation 3)

Insurance Regulatory and Development Authority (Licensing of Insurance Agents) Regulations, 2000.

APPLICATION FOR A LICENCE / RENEWAL OF LICENCE TO ACT AS AN INSURANCE AGENT

THE INSURANCE REGULATORY AND DEVELOPMENT AUTHORITY,

DEPARTMENT OF LICENSING,

NEW DELHI.

DEAR SIRS,

I request that ---

(a) a licence to act as an insurance agent* / a composite insurance agent* may be granted to me.

(b) *my licence bearing number ____________________ and expiry date_____________ may be renewed for a further period of three years.

2. I hereby declare that particulars given below are true and that the licence for which I apply will be used only by myself for soliciting or procuring insurance business for one life insurer* / one general insurer* / both*.

(1) Name:

(2) Father~s/Husband~s Name

(3) Full Address:

House No. :

Street:

Town:

District: :

State : :

Pin Code: :

Telephone No. ---

(STD Code -- Number):

(4) Date of Birth: Day- Month-Year - -

(5) Title : State 1 if are Mr., 2 Mrs., 3 Miss:

(6) If you ever held a Licence, state No. and date of expiry, otherwise say Nil.

(a) Licence Number:

(b) Date of Expiry: Day- Month-Year - -

(7) If you apply for licence to work for a life insurer,

state 1, for a general insurer, state 2, for both state 3 in the box.

(8) If you are an applicant from a rural place,

state 1, in the box.

(9) Educational Qualifications.

State 1, if you passed Class X ; 2: Class XII; 3: Graduate;

4: Post-graduate ; 5: if you hold a professional qualification

such as ACA, FASI, AICWA.):

(10) Give particulars of pass in pre-recruitment test conducted by the Insurance Institute of India or any examination body:

(a) Name of Examination Body:

(b) Candidate~s Number:

(d) Date of Passing: - -

(Day- Month-Year)

(11) Give particulars of Practical Training completed from an approved institution.

(a) Training Hours completed:

(b) Name of Training Institute:

(d) Centre (Place) of Training:

(e) Starting Date of Training: - -

(Day- Month-Year)

3. I further declare that----

(a) I have not been found to be of unsound mind by a court of competent jurisdiction;

(b) I have not been found guilty of criminal misappropriation or criminal breach of trust or cheating or forgery or an abetment of or attempt to commit any such offence by a court of competent jurisdiction;

(c) I have not been found guilty of or to have knowingly participated in or connived at any fraud, dishonestly or mis-representation against an insurer or an insured in the course of any judicial proceeding relating to any policy of insurance or the winding up of an insurance company or in the course of an investigation of the affairs of an insurer; and

(d) #I have not violated the code of conduct specified under Regulation 8 of Insurance Regulatory and Development Authority (Licensing of Insurance Agents) Regulations, 2000).

4. I have made the payment of licence fee of rupees two hundred and fifty and for which I enclose the documentary evidence.

5. I enclose the following documents in support of the educational qualification, pre-recruitment test, and the practical training.

(a) ______________________ (b)_________________________

Place Yours faithfully,

Date: Signature of applicant

(* Strike out portion not required.)

(# not applicable to the applicants seeking licence for the first time.)

Notes and Instructions

1. An individual can apply for only one licence which will entitle him to solicit or procure insurance business of any class and to act as an insurance agent for one life insurer, one general insurer, or both.

2. The application should be filled in, as far as possible, in Hindi language or English language.

3. Any correction or alteration made in any answer to the questions in the application should be initialled by the applicant.

4. An applicant must be at least 18 years of age on the date of the application. If required the applicant shall furnish proof of age.

5. An applicant shall furnish the proof of educational qualification, pass in the pre-recruitment test conducted by the Insurance Institute of India, Mumbai or an examination body approved by the Insurance Regulatory and Development Authority, and completion of practical training from a training institution approved by the Insurance Regulatory and Development Authority, along with the application. This is not applicable where the applicant is an absorbed agent.

6. The fees payable by an applicant is rupees two hundred and fifty.

7. The name and the licence No. given in the application are identical with those shown in the last licence held. If there is any subsequent change in the name, the reasons for the same should be stated furnishing documentary evidence for the same.

8. The application should reach the designated person before the expiry of licence held by the applicant but not more than three months before such expiry. If the application does not reach the designated person at least 30 days before the date on which the last licence ceases to be in force, an additional fee of one hundred rupees should be payable. In this connection please also refer to the provisions of sub-sections (3) and (3A) of section 42 of the Insurance Act, 1938.

9. If the applicant desires to work for a life insurer or a general insurer or both, as the case may be, he should enclose the documentary evidence of the relevant pass in the pre-recruitment test and the completion of the relevant practical training.

FORM IRDA-AGENTS-VB

(SEE REGULATION 3)

INSURANCE REGULATORY AND DEVELOPMENT AUTHORITY (LICENSING OF INSURANCE AGENTS) REGULATIONS, 2000.

INSURANCE REGULATORY AND DEVELOPMENT AUTHORITY,

NEW DELHI

LICENCE NO.

LICENCE TO ACT AS AN INSURANCE AGENT UNDER PART II OF THE INSURANCE ACT, 1938 (IV OF 1938)

NAME OF INSURANCE AGENT*/

COMPOSITE INSURANCE AGENT*:__________________________________

ADRESSS:

Having paid the prescribed fee and having made the necessary declaration is hereby authorised to act an insurance agent for three years from__________________ for procuring or soliciting insurance business of one life insurer* / one general insurer*/both*.

(*strike out portion not required)

Place

Date for Insurance Regulatory and Development Authority

Designated Person:

Signature of Licence holder:

This licence is not valid unless it bears a fascimile of the signature of the chairperson of the Insurance Regulatory and Development Authority and the initials of a person authorised by him in this behalf, the signature of the licence holder and the identity card(s). The licence holder should put his signature as soon as licence is received.

(See Notes on the reverse)

Notes

1. If it is desired to renew this licence for a further period the procedure laid down in Regulation 3 of INSURANCE REGULATORY AND DEVELOPMENT AUTHORITY (LICENSING OF INSURANCE AGENTS) REGULATIONS, 2000, shall be followed, and application for renewal should reach the Designated Person before the licence expires. In this connection attention is also invited to the provisions of sub-sections (3) and (3A) of section 42 of the Insurance Act, 1938.

2. This licence authorises the licence holder to act as an agent for the insurance business specified thereunder, and therefore no identifying mark or note of any description by which the identity of an insurer might be established should be placed on the licence.

3. No correction in this licence will be valid unless initialled by the Insurance Regulatory and Development Authority or a person authorised by him in this behalf.

4. The attention of the licence holder is drawn to the code of conduct specified under Regulation 8 of INSURANCE REGULATORY AND DEVELOPMENT AUTHORITY (LICENSING OF INSURANCE AGENTS) REGULATIONS, 2000, and any violation of code of conduct may result in cancellation of licence.

FORM IRDA-AGENTS-VC

(See Regulation 3)

Insurance Regulatory and Development Authority (Licensing of Insurance Agents) Regulations, 2000

APPLICATION FROM A FIRM OR COMPANY FOR A LICENCE / RENEWAL OF LICENCE TO ACT AS AN INSURANCE AGENT

THE INSURANCE REGULATORY AND DEVELOPMENT AUTHORITY,

DEPARTMENT OF LICENSING,

NEW DELHI.

DEAR SIRS,

It is requested that ---

(a) *a licence to act as an insurance agent*/a composite insurance agent* may be granted to our Firm/Company;

(b) *our licence bearning number ____________________ and expiry date_____________ may be renewed for a further period of three years.

2. It is hereby declared that particulars given below are true and that the licence for which our Firm/Company apply will be used only by our Firm/Company for soliciting or procuring insurance business.

(1) Name:

(2) Full Address:

House No. :

Street:

Town:

District: :

State : :

Pin Code: :

Telephone No. ---

(STD Code -- Number):

(3) (i) (In the case of a Firm) the names of all the partners therein:

(iii) (In the case of a Company) the names of the Directors:

(4) Whether the Partnership Deed*/Memorandum of Association* contains as main objects the carrying on of soliciting or procuring insurance business as an insurance agent. (Please enclose a certified copy of the Partnership Deed*/Memorandum of Association*)

(5) The date from when the licence should be effective:

(6) If you apply for licence to work for a life insurer,

state 1, a general insurer, state 2, for both, state 3 in the box.

3. It is further declared that----

(a) any partner of our Firm*/ any Director of our Company* has not been found to be of unsound mind by a court of competent jurisdiction;

(b) any partner of our Firm*/ any Director of our Company* has not been found guilty of criminal misappropriation or criminal breach of trust or cheating or forgery or an abetment of or attempt to commit any such offence by a court of competent jurisdiction;

(c) any partner of our Firm*/ any Director of our Company* has not been found guilty of or to have knowingly participated in or connived at any fraud, dishonestly or mis-representation against an insurer or an insured in the course of any judicial proceeding relating to any policy of insurance or the winding up of an insurance company or in the course of an investigation of the affairs of an insurer;

(d) any partner of our Firm*/ any Director of our Company* has not violated the code of conduct specified under Regulation 8 of Insurance Regulatory and Development Authority (Licensing of Insurance Agents) Regulations, 2000);

(e) the application in Form IRDA-Agents-V for each partner of our Firm*/each Director of our Company* has been enclosed along with this form;

(f) any partner of our Firm*/ any Director of our Company* is not a minor.

4. The payment of licence fee of rupees two hundred and fifty has been made and for which the receipt is enclosed.

5. The documents in support of the educational qualification, pre-recruitment test, and the practical training, in respect of all partners of our Firm*/ all Directors of our Company* have been enclosed along with this form.

(* Strike out portion not required.)

Place Yours faithfully,

Date: Signature of applicant

Notes

1. The application should be filled in, as far as possible, in Hindi language or English language.

2. Any correction or alteration made in any answer to the questions in the application should be initialled by the applicant.

3. The fees payable by an applicant is rupees two hundred and fifty.

4. The name and the licence No. given in the application are identical with those shown in the last licence held. If there is any subsequent change in the name, the reasons for the same should be stated furnishing documentary evidence for the same.

5. The application should reach the designated person before the expiry of licence held by the application but not more than three months before such expiry. If the application does not reach the designated person at least 30 days before the date on which the last licence ceases to be in force, an additional fee of one hundred rupees should be payable. In this connection please also refer to the provisions of sub-sections (3) and (3A) of section 42 of the Insurance Act, 1938.

6. If the Firm or Company desires to act as an insurance agent or a composite insurance agent , as the case may be, the documentary evidence of the relevant pass in the pre-recruitment test and the completion of the relevant practical training of partners of the Firm or directors of the Company should be enclosed.

7. In case of a Firm, the signatory to the application (being a partner) should enclose a certified copy of the resolution of all the partners authorising him to make the application. In the case of a Company, the signatory to the application (being a director) should enclose a certified copy of the resolution of Board of Directors authorising him to make the application.

FORM IRDA-AGENTS-VZ

(See Regulation 3)

Insurance Regulatory and Development Authority (Licensing of Insurance Agents) Regulations, 2000)

Individual Insurance Agent~s identity card

Photo

Agent~s

signature

Male/Female

Issued on:

- -

Valid upto:

- -

born on:

- -

Agent~s Licence No.:

Name of the Agent:

Father~s/Husband~s Name:

Office of the Insurer with whom the agent is attached:

The holder of this card is authorised to sell our insurance products, as per our terms and conditions.

Signature of Designated Person

Name of Insurer (With Seal)

(Please see on the reverse)

Address and telephone numbers of the Insurer: (If required to be contacted by any one in connection with the holder of this card):

Address and telephone numbers of the Agent:

FORM IRDA-AGENTS-VY

(See Regulation 3)

Insurance Regulatory and Development Authority (Licensing of Insurance Agents) Regulations, 2000)

Corporate Agent’s Identity Card

Valid upto:

- -

born on:

- -

Corporate Insurance Agent~s Licence No.:

Name of the Corporate Insurance Agent:

Signature of the Applicant (as authorised by the Corporate Agent)

Office of the Insurer with whom the corporate insurance agent is attached:

This card authorises the corporate insurance agent named above to sell our insurance products, as per our terms and conditions.

Signature of Designated Person

Name of Insurer (With Seal)

(Please see on the reverse)

Address and telephone numbers of the Insurer: (If required to be contact by any one in connection with the holder of this card):

Address and telephone numbers of the Corporate Insurance Agent:

Names of Partners / Directors of the Corporate Insurance Agent:

N. RANGACHARY, Chairperson
No. Advt.-3/4/Exty/161/2000

Download
IRDA (Licensing of Insurance Agents) Regulations, 2000.pdf
1.1 MB
IRDA (Licensing of Insurance Agents) Regulations, 2000 Attachment-1.doc
303 KB

Quick Links

E Services & Important Links

IRDAI Head Office

IRDAI Regional Offices