| CORP AGENTS COME UNDER
IRDA GLARE
Insurance regulator, IRDA, is reviewing the performance of
corporate agents and has asked all insurance companies to stop
issuing fresh Iicences to such agents until further notice.
Disclosing this at the ‘international conference on regulatory
best practice and emerging trends in life insurance’, IRDA Chairman
C S Rao said, there were some complaints against corporate agents.
“We came to know that corporate agents are not disclosing full
details to clients. It has also been observed that they are
using multi-level marketing strategies which are more suitable
for consumer goods than insurance products”. He added that the
regulator had issued a circular to all insurance companies not
to issue fresh licences to corporate agencies. “We will review
their performance and give fresh regulations in this regard”,
he said adding there is a need to build a proper nexus between
the insurance agent and the company.
On NGOs becoming corporate agents, he said the regulator had
come up with a draft regulation which is in circulation. A final
decision would be taken soon in this regard, he maintained.
He opined that as NGOs are not profit making organisations
they should not be allowed to become corporate agents.
Courtesy Ens Economic Bureau - The Indian Express
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IRDA TIGHTENS NORMS FOR AGENT TRAINING INSTITUTES
After detecting anomalies in the functioning of several agent
training institutes, the Insurance Regulatory and Development
Authority has tightened the entry norms while stipulating stiff
penalties and suspension in case the institutes fail to comply
with rules.
The instructions and guidelines, which are applicable to all
training institutes including in-house units of insurers, come
into effect from October 3 I, 2005.
The new norms bar training institutes from allowing a franchisee
to conduct courses on its behalf. IRDA has also decided to do
away with temporary accreditation and the existing ones would
cease to operate from December 31.
While stressing on better infrastructure, record-keeping and
attendance of students, the regulator has mandated institutes
to devise syllabus that incorporates the new regulations of
IRDA, new products introduced by insurers, tax matters, policyholders
protection and agents code of conduct.
“Any violation, non-adherence and breach of these instructions
shall be treated as violation of provisions of IRDAAct, InsuranceAct
and regulations requiring practical training for grant of licence
to an insurance agent and renewal thereof”, IRDA said in its
new guidelines.
In case of violation of the rules, IRDA said there can be penal
provisions including fine, suspension and cancellation of the
approval granted by the authority from time to time.
According to the new norms, an institute had to impart atleast
100 hours of practical training in life or general insurance
spread over 3-4 weeks to applicants seeking licence for the
first time.
Courtesy Business Line •
SC ASKS INSURANCE COMPANIES TO AMEND BURGLARY POLICY
The Supreme Court has advised all insurance companies to amend
the definition of “burglary and housebreaking” for the purposes
of insurance coverage to give it a meaning closer to realities
of life.
The common man by taking a policy against burglary and housebreaking
“understands that he has taken a policy against theft” and hardly
realises whether the incident of theft should precede violence
or force, a Bench comprising justice S. N. Vairava and justice
A. K. Mathur said in a recent judgement.
“Therefore, a policy should be a meaningful policy so that
a common man can understand what is the meaning of burglary
in common parlance”, it said.
“We hope that the insurance companies will amend their policies
so as to make them more meaningful to the public at large. It
should have a meani.ng which a common man can easily understand
rather than become more technical so as to defeat the cause
of the public at large”, justice Mathur, writing for the Bench,
said.
Courtesy : IRDA Journal
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