| EXTRACT OF CIRCULARS
CREDIT OF BUSINESS SECURED AFTER THE DATE OF EXPIRY
OF THE LICENCE AND
BEFORE THE ISSUE OF RENEWED LICENCE
Ref : Mktg/Zd/51/2002. Dated : 31-7-2002
In the light of the guidelines received from the IRDA after
the IRDA (Licencing of Insurance Agents) Regulations, 2000 was
affected, the agents have been strictly advised not to solicit
or procure business when their licence is not in force. Agents
booking business when their licence is not in force is violation
of Section 42 of Insurance Act. 1938. All our offices have been
advised not to accept any business from such agents whose licence
is not in force.
In strict accordance with the standing instructions issued
in this behalf, not business should be accepted by our branch
offices from an agent whose licence is not force.
In spite of such clear guidelines, there have been cases when
business has been accepted by our offices from agents whose
licences have expired and they have not got it renewed. It has
been decided that the provisions of allowing “Credit
of business secured after the date of expiry of the licence
and before the issue of renewed licence” which was
laid down vide our Circular Ref. DD/ZD/36/75 dated 5th August
1975 may continue.
“Sr / Divisional Manager may consider the question of allowing
the credit of business done in the absence of a valid licence
to the agents concerned. The Officer-in-Charge of Branch Office,
should refer any request for credit of business done in the
absence of a valid licence to the Sr/Divisional Manager furnishing
him the specific circumstances under which the business came
to be accepted by him, whereupon the Sr/Divisional Manager will
consider the matter and it he so decides, afford of business
to the agent provided the licence has been renewed in continuity
with the previous licence under the existing rules”.
We may reiterate that the credit of business in such cases
be allowed in the interest of the policyholders so as not to
deny insurance protection to them.
The Sr. Divisional Managers may also review the cases where
in credit of business has been denied earlier.
REAPPOINTMENT OF AGENTS
Ref Mktg./ZD/74/2002 Dated : 07-1 1-2002
We invite your attention to our Cir. Ref Mktg. / ZD/19/2001
dated 21-06-2001 and further letter / Ref Mktg./A/Reappointment
dated 27-06-2002 on the above subject wherein the guidelines
for Reappointment of Agents have been issued. It has been decided
to make the following modifications in the matter of Reappoinment
of Agents.
The reappointment of agents can be done under a Development
Officer who had been to motivate the terminated agent for reappointment
and not necessarily under the Development Officer under whom
the agent was attached to earlier, provided -
1. The agent has to apply for reappoinment under the new Development
Officer giving reasons for such a request.
2. Period of atleast 3 years should have elapsed from the date
of termination to date of application for reappointment.
3. For such reappointment, it is necessary for the agent to
go in for fresh training and test etc. as per IRDA regulations.
The Competent Authority for such reappointment is the Zonal
Manager in-charge of the Zone. Also the condition of obtaining
a ‘No objection certificate from the Development Officer under
whom the agent was working earlier need not be insisted upon
in such cases. All other guidelines regarding the reappointment
of agents remain unaltered.
These instructions come into force with immediate effect. Kindly
note that no past cases to be reopened under any circumstances
PROCESSING OF AGENTS’ APPLICATION FOR RENEWAL OF LICENCE
Ref Mktg./A/1(R) (3) 15-07-2004 Time and again guidelines have
been issued from Agency Section, Marketing Dept., Central Office
that adequate care has to be taken while issuance / renewal
of licence and it is to be ensured that the application is complete
in all respects. Records should be properly maintained as the
IRDA may at any point of time conduct surprise checks!
By now, all the agents would be having licences issued under
the IRDA norms and their basic data like Date of Birth, Educational
Qualification would be available on the licencing site. It is
advised that proofs for Date of Birth / Educational Qualification
need not be insisted upon for renewal of licence if the agent
is already having a licence issued the IRDA norms. This may
be brought to the knowledge of all concerned.
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