“IRDAI (Appointment of Insurance Agents) Regulations, 2016” provides a framework for the appointment, training, and regulation of insurance agents in India. Here’s a detailed summary of the regulation:
Title and Commencement
These regulations are formally titled as “IRDAI (Appointment of Insurance Agents) Regulations, 2016”.
They came into effect on April 1, 2016.
Definitions
Key terms such as “Act,” “Authority,” “Insurance Agent,” and “Insurer” are defined to clarify their meanings within the context of these regulations.
Appointment of Insurance Agents
Eligibility: Specifies the qualifications required for an individual to be eligible for appointment as an insurance agent, including age, educational qualifications, and passing of specified examinations.
Procedure: Outlines the procedure for appointment, including the application process, necessary documentation, and criteria for selection by insurers.
Duties and Responsibilities
Agents must act honestly, treat clients fairly, and avoid conflicts of interest.
Agents are required to disclose their status as agents, the terms and conditions of the products they offer, and any fees or charges that clients may incur.
Training Requirements
Pre-appointment training: Mandatory training hours are specified for agents before their appointment.
Examination: Agents must pass an examination conducted by bodies recognized by the IRDAI.
Code of Conduct
A detailed code of conduct is provided, including guidelines on agents’ behaviour, advertising, and interactions with clients.
Performance Monitoring
Insurers are required to regularly monitor the performance and conduct of their agents to ensure compliance with regulatory requirements and ethical standards.
Renewal of License
The regulations specify the process for the renewal of an agent’s license, including continuing education requirements and the renewal application process.
Disciplinary Actions
Outlines the actions that can be taken against agents for non-compliance with the regulations or misconduct, including suspension or cancellation of their license.
Reporting Requirements
Insurers must maintain records of all appointed agents and report to the IRDAI as required.
These regulations aim to ensure that insurance agents operate in a manner that is ethical, transparent, and in the best interests of consumers, thereby promoting trust and professionalism in the insurance sector.
