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The Insurance Regulatory and Development Authority of India clarifies provisions regarding the sale of Government sponsored insurance schemes through Point of Sales (POS) persons. General insurers, health insurers, and insurance intermediaries must apply the actual sum insured and premium stipulated in respective Government schemes without change. Point of Sales persons can sell Government Sponsored Crop Insurance Schemes over the area of the insured field using the notified rates. Pradhan Mantri Jeevan Suraksha Bima Yojana is read as Pradhan Mantri Suraksha Bima Yojana (PMSBY). Point of Sales persons can solicit and market eligible Government sponsored schemes through agents or intermediaries and receive commission according to norms.
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Ref: IRDA/INT/CIR/PSP/158/08/2016
भारतीय बीमा विनियामक और विकास प्राधिकरण INSURANCE REGULATORY AND DEVELOPMENT AUTHORITY OF INDIA
Date: 9th August, 2016
Circular
To All CEOs of General Insurers, Health Insurers and Insurance Intermediaries.
Sub: Clarification - Addition of Products for sale through POS
Reference is drawn to IRDAI circular Ref: IRDA/INT/CIR/PSP/139/07/2016 dated 13th July, 2016 adding products for sale through POS. On the circular the Authority has received representation from some insurers seeking clarification on POS marketing Government sponsored Insurance Schemes without any sum insured limit.
In this regard, it is clarified that:
The meaning of the phrase "without any limit on Sum Insured" is that in all Government sponsored Insurance Schemes, whatever actual sum insured and premium is stipulated in respective scheme, the same will continue with no change.
As regards crop insurance, by allowing POS to sell the product without sum insured limit, all we mean is that the POS can sell Government Sponsored Crop Insurance Schemes offered by an insurer which covers the crop of the policyholder, over the area of the insured field. However, the sum insured/premium/ premium rate per crop/unit area/tree, as the case maybe, remains what is notified under the respective Government sponsored Insurance Schemes without any change.
"Pradhan Mantri Jeevan Suraksha Bima Yojana" may be read as "Pradhan Mantri Suraksha Bima Yojana (PMSBY)". While PMSBY is linked to the bank account and currently only banks sell the product by debiting directly the account of the insured, there may be other Government Sponsored Insurance Schemes which are allowed to be marketed through agents or insurance intermediaries. In such cases the POS can solicit and market the schemes for which they will be entitled to commission or remuneration as per norms.
परिश्रम भवन, तीसरा तल, बशीरबाग, हैदराबाद-500 004. भारत (9) : 91-040-2338 1100, फैक्स: 91-040-6682 3334 ई-मेल: irda@irda.gov.in वेब: www.irda.gov.in
Parisharam Bhavan, 3rd Floor, Basheer Bagh, Hyderabad-500 004. India. Ph.: 91-040-2338 1100, Fax: 91-040-6682 3334 E-mail : irda@irda.gov.in Web.: www.irda.gov.in
[Image omitted. See the official document.]
(P. J. Joseph) Member (Non-Life)
