1. Preliminary
The insurance intermediaries engaged in solicitation and distribution of insurance products, viz., Insurance Brokers, Corporate Agents, Insurance Web Aggregators, Insurance Marketing Firms are required to take Professional Indemnity Insurance Policies in order to get themselves indemnified from the claims lodged against them, arising out of the contingencies mentioned in the regulations governing them. There have been numerous instances where the policy taken by the intermediary does not comply with the Regulatory provisions.
2. Objective
The objective of these guidelines is to specify the professional indemnity policy that meets the regulatory requirements.
3. General
These Guidelines for Professional Indemnity Policy for Insurance Brokers, Corporate Agents, Insurance Web Aggregators and Insurance Marketing Firms are issued in exercise of the powers conferred upon the Authority under clause (i) of sub section (2) of Section 14 of IRDA Act, 1999.
4. Guidelines on Standard Professional Indemnity Policy for Insurance brokers/ Corporate Agents/ Web Aggregators/ IMF
a. The standard professional indemnity policy shall have the mandatory covers as specified in these Guidelines which shall be uniform across the market.
b. The standard professional indemnity policy shall comply with all extant provisions as per guidelines Ref. IRDAI/NUGDLIF&U/030/02/2016 dated 18th February, 2016 as amended from time to time.
c. Every General insurer, who has been issued a Certificate of Registration to transact General Insurance Business, shall endeavor to offer this Standard Professional Indemnity for insurance brokers, corporate agents, web aggregators and insurance marketing firms.
