“Insurance Regulatory and Development Authority of India (Registration of Insurance Marketing Firm) Regulations, 2015” outlines the framework for the registration, operations, and oversight of Insurance Marketing Firms (IMFs) in India. Here’s a detailed summary of the regulations:
General Provisions
Title and Commencement: These regulations are formally known as the IRDAI (Registration of Insurance Marketing Firm) Regulations, 2015, effective from their publication in the Gazette.
Definitions: Clarifies key terms such as “Act,” “Authority,” “Insurance Marketing Firm,” and others relevant to the regulations.
Registration of IMFs
Eligibility Criteria: Specifies who can apply for registration, including conditions related to organizational structure and financial stability.
Application Process: Details the documentation and procedural requirements for entities seeking registration as an IMF.
Validity and Renewal of Registration: Registration is valid for three years and details are provided for the renewal process, including required documentation and timelines.
Operational Guidelines
Scope of Activities: Defines permissible activities for IMFs, including marketing of insurance products, distribution of mutual funds, and other financial products under specific conditions.
Compliance Requirements: IMFs must comply with guidelines on conduct, financial integrity, and reporting obligations.
Training and Qualifications: Specifies training requirements for personnel involved in marketing and sales.
Responsibilities and Duties
Duties Towards Policyholders: Emphasizes the importance of fair conduct, transparency, and ethical practices in dealings with policyholders.
Management and Reporting: Outlines the management structure required, including roles and responsibilities of key management personnel, and periodic reporting requirements to IRDAI.
Compliance and Penalties
Inspections and Investigations: Provides for regular inspections and investigations of IMFs by IRDAI to ensure compliance with the regulations.
Penalties for Non-Compliance: Details the penalties for violations, including potential fines and suspension or cancellation of registration.
Miscellaneous
Power to Issue Directions: IRDAI retains the power to issue further directions and clarifications regarding the implementation and interpretation of these regulations.
Amendment and Removal of Difficulties: Provisions for amending the regulations and addressing any difficulties in their enforcement.
These regulations aim to standardize the operations of Insurance Marketing Firms in India, ensuring they operate in a manner that is transparent, responsible, and in the best interests of consumers, thereby enhancing the trust and effectiveness of the insurance marketing sector.
