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The Insurance Regulatory and Development Authority of India issues clarifications on the IRDAI Registration of Corporate Agents Regulations, 2015 for insurers and existing corporate agents. The notice details portal access, application procedures, specified person qualifications, half-yearly certificates, open architecture policies, fit and proper criteria, infrastructure evidence, dispute disclosures, financial projections, fee payments, and professional indemnity insurance requirements. Existing specified persons with tenth-pass qualifications may continue to work. Independent and nominee directors, listed companies, banks, and non-banking financial companies receive specific exemptions from certain document submissions.
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भारतीय बीमा विनियामक और विकास प्राधिकरण INSURANCE REGULATORY AND DEVELOPMENT AUTHORITY OF INDIA
Ref: IRDA/CAGTS/CIR/LCE/029/02/2016
10.02.2016
CEOs of all Insurers and CIEs of all existing Corporate Agents
Reg: Clarifications on IRDAI (Registration of Corporate Agents) Regulations, 2015
The Authority has notified the IRDAI (Registration of Corporate Agents) Regulations, 2015 on 20.08.2015 and has issued instructions for obtaining Certificate of Registration under IRDAI (Registration of Corporate Agents) Regulations, 2015 vide Ref. No. IRDAI/CAGTS/GDL/LCE/ 202/ 11/ 2015 dt 18.11.2015.
We have to inform you that the Corporate Agency portal is available for uploading the application for registration along with the other documents. The user ID and password have been sent to the existing corporate agents enabling them to upload the applications etc., for obtaining the Certificate of Registration.
On getting queries from some insurers and corporate agents, the following clarifications are issued:
As per Regu 7(3) a, the SPs of the applicant should have passed minimum of 12th Class or equivalent examination from a recognized Board/Institution and Regu 7(3) e. says that SPs/CIEs who are qualified and already working with a Corporate Agent licensed under IRDA(Licensing of Corporate Agents) Regulations, 2002 may continue to work with Corporate Agents registered under
these regulations. Hence it is clarified that the existing SPs with 10th pass will be allowed to work continually.
Whereas in the format it is mentioned that it should be certified by CEO and CFO. The Authority clarifies that the Schedule VIII can be certified by PO and CFO as mentioned in the regulation.
The names of the partners in the tie-ups need not be mentioned in the board approved policy and as per Regu 23 (a) the arrangements with insurers (partners in the tie-ups) for distribution of their products shall have to be disclosed to the Authority within 30 days of entering into such arrangements.
It is clarified that independent and nominee Directors are exempted from Fit and Proper criteria and also the Fit and Proper in Annexure I collected from SPs need not be submitted to the Authority. However, It should be preserved by the Corporate Agent and it should be made available to the Authority during Inspection.
The Fit and Proper Declaration is submitted in individual capacity of the principal officer/ directors and hence they have to submit the details of all the entities in which they are interested/ holds directorship.
It is also to be clarified that S NO. o) of Annexure I is removed and hence details need not be furnished.
Considering the number of offices, Listed Companies, Banking and NBFC's are exempted from submitting the above evidences to the Authority. All such documents should be preserved at their head/registered office and it should be made available during inspection by the Authority.
It is clarified for Sl No. 5.1 of Form A, the details of all settled and pending disputes in respect of insurance related matters has to be provided.
As per Regu 4 and Point 6 of Form A, the corporate agent has to submit the Projections of administrative expenses, salaries and wages and other expenses, draw the revenue account, the profit and loss account and the balance sheet for the projected 3 years.
We clarify that this applies to the corporate agents incorporated exclusively for the purpose of insurance intermediation.
In respect of other corporate agents and banks the annual report/s with detailed information on expense, profit and loss and balance sheet are to be submitted.
The Corporate Agents/Applicants should preferably make the non refundable fee and registration fee through Bill Desk in the Corporate Agency Portal.
The Fee for Specified Persons can be made through Web Wallet account.
9 As per Regu 19, every corporate agent, where the revenues from their insurance intermediation activities is more than fifty per cent of their total revenue from all the activities, shall take out and maintain at all times a professional indemnity insurance cover throughout the validity of the period of the registration granted to it by the Authority.
The limit of indemnity shall be two times the total annual remuneration of the corporate agent derived from their insurance intermediation activities in a year subject to a minimum of Rupees fifteen lakh and a maximum of Rupees one hundred crore.
Provided that the Authority shall in suitable cases allow a newly registered corporate agent to produce such a policy within twelve months from the date of issue of original registration.
Every existing corporate agent where the revenues from their insurance intermediation activities is more than fifty per cent of their total revenue from all the activities, has to produce a copy of the professional indemnity insurance policy at the time of application.
The user manual for corporate agency portal and FAQ in respect of these Regulations are available in the portal.
TS Naik Joint Director Agency Distribution
