Reference is invited to the Circular No. IRDA/CAD/GDL/AGN/052/03/2011 dated 25th March, 2011 wherein the Authority has allowed special dispensation to Standalone Health Insurance Companies to avail the services of General Insurance Agents of other Companies to distribute their products. In continuation to the above, the issue of distribution of products of standalone Health Insurance Companies was examined in detail.
The Authority had recognized that health insurance cover is the necessity of the Indian public and hence proposed the same as a separate class of business while granting registration to some Insurers to act as Standalone Health Insurance Companies to provide only health insurance products. It is observed that currently the Standalone Health Insurance Companies can utilize the services of Life Insurance Agents after converting them into composite agents, which calls for completion of IC 34 Certification by them.
Considering the fact that the IC 33 and IC 34 cover subject matters on health insurance, it has been decided to waive mandated IC 34 certification for Life Insurance Agents desiring to distribute products of a Standalone Health Insurance Company.
However, the Standalone Health insurers desirous of converting Life Insurance Agents into Composite Agents to sell their products, based on IC 33 Certification, they shall do so after making such Agents undergo an internal training programme on health insurance, which shall cover the basics of health insurance, health insurance terminology, and products etc. for a minimum period of 25 hours. Further, it is clarified that such Composite Agents shall not be allowed to transfer general part of their license to other non-life insurance company without completing IC-34 certification.
Further, In order to encourage penetration of health insurance and to spread the message of health insurance across the country, it has also been decided to allow Standalone health insurance companies to avail the services of Agents, Corporate Agents of other Life and/or Non-Life insurance companies to distribute their products provided such Agents and Corporate Agents undergo 25 hours training as mandated at para (2) above.
However, in terms of this permission, any agent, corporate agent of Life and/or Non-life insurance Company shall not offer his/her services to more than one Standalone Health Insurance Company.
These Guidelines will apply with immediate effect and forms part of Authority’s Circular Ref. No: 017/IRDA/Circular/CA Guidelines/2005, dated 14.07.2005
(J. Hari Narayan)
Chairman
