After the Insurance Regulatory and Development Authority (IRDA) rolled out the Sharing of Database Regulations, 2010, all insurance companies have been filing applications for approval of referral entities with IRDA. This process is done through Referral Portal designed by IRDA.
But a recent review done by the IRDA brought some issues such as –
Numerous applications are pending with the Insurers i.e., they are not attending to the applications for up to more than one year
Insurers are not uploading referral agreement copies with the approved entities in the portal even after the Authority’s approval i.e., some are pending for more than 21 months from the date of approval.
This is making it difficult for the IRDA to know how many agreements are actually in effect. If the time frame exceeds a certain period and falls in the next financial year, all such applications i.e., pending/approved need to be evaluated afresh by the regulator.
In order to avoid this, IRDA has decided to prescribe time limits for each of the following cases:
Insurers are required to resubmit the pending applications after submitting their remarks/responses for the queries/requirements raised by IRDA within three (3) months from the date of queries/requirements and
Insurers are required to execute referral agreements with the approved entities within three (3) months from the date of approval by IRDA
All the insurance companies have to comply with the above time limits. In case any of the insurance companies fail to do so, then the applications will be deemed to be “Withdrawn†by the Insurers.
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