IRDA (Licensing of Insurance Agents) Regulations, 2000

• C 'iml<!il~:arnlt.1T{111 INSURANCE REGULATORY AND DEVELOPMENT AUTHOJUTY NOTIFICATION New Delhi, Lhe 14th July, 2000 lnsur.mcc Rcgufatory and Development Authority (Licensing of Im.-urance Agents) Rl'1.'11lationi, 2000. R No. IRDA/Rcg/7/2000.~, - 15 In exercise of the powers conferred by sub-section (6) of section 42 and clauses (k), (!). (m}, (n). (o) and (p) of sub-section (2) of section 114A of'U1e Insurance Act, 1938 (4 of 1938), the Authority, in consultation with the l1Jst1ra11cc Advisory Committee, hereby makes the following regulations. namely:- I. Short title and commcncemenL--( I) These regulations may be called Insurance Regulatory and Development Authonty ( L,1censmg or Insurance Agents) Regulations, 2000. (2) They shall come into force on tile date of their publication in U1c Official Gazette. 2. Dcfinitions.-ln these regulations. unless the context otherwise requires. - (a) "Act" means the lnsur:mcc Act. 1938 (4 of 1938); (b) ".4pproved l11sti111uon" means an Institution engaged in education and/or lrainiug particularly in the area of insurance sales. service and marketing. approved and notified by the Authority: (<') ".4uthomy" mean~ the Insurance Regulatory and Development Authority established under the provisions or Section 3 or the Insurance Regulatory and Development Authority Act. 1999 (41 of 1999); (d) "Composite i11sw·"11ce agent" means ,u1 insurance agent who holds a licence to act as an insurance agent for a life insurer and a general insurer; (e) .. Corporate AJ?e111" means a per-son other than an individual as specilied in clause (i): (/) 'Designated person" means an officer normally in charge of marketing operations. as specified by an insurer. and authorised by the Authority to issue or re11ew licences under these regulations; (gj "Exw11i11atto11 Bo,fr" means an lllsti1u1ion. which conducts pre-recruitment tests for insurance agents and which ,s duly recognised by the Authority: (h) "licence" means :1 certi ficate of licence 10 act as an insurance agent issued under these regulations; (i) "Person .. means -- ( i) an individual; (ii) a tum; or 16 TIIE GAZETTE OF INDIA: EXTRAORDINARY (PART Ill-SEC. 4] (iii) a company formed under the Companies Act, I 956 {I of 1956), and includes a banking company as defined in clause (4A) of section 2 of the Act; (i) "Practical Trai11i11g" includes orientation, particularly in the area of insurance sales, service and marketing, through training modules as approved by the Authority; (k) .. Proposa/.fonn" means an application for purchase of an insurance product which shall be the basis of insurance contract; (/) "Prospecr ·· means a potential purchaser of an insurance product; {m) "Recognised Board or J11stitutio11" means such board or institution as may be recognised by any State Government or the Central Government. (2) All words and expressions used herein and not defined but defined in the Insurance Act, 1938( 4 of 1938), or in the Insurance Regulatory and Dcvclopmem Authority Act, 1999 (41 of 1999), shall have the meanings respectively assigned to them in those Acts. J. Issue or renewal of licence.--( I) A person desiring to obtain or renew a licence (hereinafter referred 10 as "the applicant"} to act as an insu rance agen\ or a composite insurance agent shall proceed as follows:- (a) the applicant shall make an application to a designated person--- (i) in Form !RDA-Agents-VA, if the applicant is an individual; (ii) ill Form IRDA-Agents-VC, if the applicant is a firm or a company: Provided that the applicalll. who desires 10 be a composite insurance agent, shall make two separate applications. 1h1 !'he f.:cs pa) ,1hk by lhc applicant 10 the Authority shall be as specified in Regulation 7. 1 21 The dt:signatcd ps:rson 111:l). on reccip1 or 1he application along with the evidence of payment of ,-.. ~- lv •he :\uthom\·. :111d on being .-,,lisii~d 1h,,r t''·. ,,,•~•l·~a.:i. •· fr I pn,,cs~L-s lhL· 'l'"'.!1 :ica1 ions as spec11ieJ under Regulation 4: , ,rl ,'"''"'''"~ the: pra,·1,.:al lro111ing ,IS specified under Regulation 5: , , 1 11;1, pJss.:J lh<.: cxam111a1io11 .is spcci ficJ under Regulation 6; 11,) has rumishcu the applrc.iuon complete in all respects: ( 1) lr:,s the.: rc4ursil.: knowledge 10 sol icil and procure insurance b11~incss; and 1, rl is capable ,,1 providing the necessary servJCe 10 the pohcyholdcrs; "rant ur r.:11~1\'. :is 1hc case may be. a licence in F om1 !RDA-Agents-VB, along with identity card in l·,.,n11 I RDA-Agems-VZ: Provided that in the case of a c0q)()rate agent. the identity card shall be in Form !RDA-Agent-VY. Provided runhcr that such 1dc111ity card from one life insurer and such identity card from one general insurer shall b~ pro, 1ded 10 the applicant seeking licence 10 act as a composite insurance agenl. Provided further that in the case of a linn or ,1 company, all of its partners or directors, as the case may be, shall fulfil the requirements of sub-clauses (i) to (iii). C '1'mf "!il <IG!'l>I : ~ 17 Provide<! further a licence issued m accordance with tltis regulation shall entitle the applicant to act as insurance agent ror one life insurer or one general insurer or both, as the case may be. (~) ff the designated person refuses to grant or renew a licence under lhis regulation. he shall give the reasons therefor to Ilic ,tpplicant. 4. Qualifications of the appikant.- The applicant shall possess the mimmum qualificalton of a pass m 12th Standard or equivalent examination conducced by nny recognised Board/Tnstitution. where the applicant resides in a pla<Ce with a population or live thousand or more as per the last census, and a pass in I 0th Standard or equivalent examination rrom a recognised Board/ Institution 1fthe applicant resides m ,111y other place. 5. Practical Training. -- t I J The applicant shall have completed rrom an approved institution, al least. one hundred hours· pr;iclical training in lifr or general insurance busmess. as the case may be. which 111Jy be spread over chrce to four weeks, where such applicant is seeking licence for the first 111nc 10 act as insuranc~ agcnl. Prov1dcd that the applicant shall ilavc completed from an approved institution. at leasL one hundred fiiiy hours· practical 1ra111ing in life and gencr"-1 insurance business, which may be spread over six IO <!1gh1 weeks, where such applicant 1s seeking licence for tl1e first time lo act as a composite 1 nsurancc agenl. (2) Where the apphcam. rci"crrcd to under sub-regulation (I), is-- ra) an .l\ssociatc/h:llow ,,!'th.: ln,urance Institute oflndin, Mumbai; (h) an Assoc1ate/Fello" of the Institute of Chartered Accountants of India, New Delhi; ( c) an Assoc1aten7el1,1w n r th<.: l11s11tutc or Costs and Works Accountants of India. Calcutta; (d) an Assoc1a1c/h:llow or cbe Institute or Company Secretaries of India, New Delbi; (c) an Assocrnce/Fcllow of lhc Actuarial Society oflnd1a, Mwnbai; (f) a Masler ot IJusines, Ad111inis1raLiu11 uf any institution / University re.rogniset! hy any State t,ov..:mment or the l'cntr~I Government: or {~) po,scssing .inv prnlc$s1onal quai1!icallon in marketing from any lnHtituuon / Univers11y recognised by an) St:itc l,ovemme111 ur the Ccmral Government-- he shall h",·e completL:d. m lt.:ast. liliy hours' practical training from an approved insllmtion. Provided that sud1 ,tpplicant shall lia\"c completed from a11 approved instiwuon, al least, seventy hours· pranical Lr:1in111g 111 life ;111d general insurance business, where such applicant 1s seeking licence for tl1e first tm1c In acL as a cumposJte msu ranee agent. (,) An applicant. \\ l10 hus been grn111ed a licence after the commencement of these r'!gulations, hefore seekmg rcne"al ol licence to .1c1 ~s an insurance agent. shall have completed. at least 1wcncy-liv<: hours pr;1c11cal training 11' life or general insurance busmcss, as the case may be. from :in approved instilut1011. l'rov1ded that such applicant before scckmg renewal of" licence to act as a composite insurance agent shull have compleced from an appnl\'Cd inst1tmio11, at least, fifty hours' practical training Ill Ii fe and general insurance bus111ess. 1 1\'1~ f;ct:t--3.• IS THE GAZETTE OF !NOIA· EXTRAORDINARY 6. Examination.- 1'11.- . \pphca111 shall h,1vc passed the prc-rccrnnmcnt cxan11na11on 111 hie or general msurJ11(,c h11s1,1~ss. llf both. as the case may be conducted by 1he [n,urance Institute of l11d1a. M umha,. or anv nthn cxam111a11011 body 7. fee~ pa~ :ibk.- t I I I Ii. h:c, pavahk 111 the Authority for issue or renewal of licence to .ict .is 11isur:1ncc d,!<:!lt or .1 (c,111110,tt<' 111su1"c111cc al!Cllt shall be rupees two hundred and fifty. , ~ I rJ1c add1t1onal ll:cs pavahlc to the Anthomv. under the c1rcumstanccs menuoncd in sub-section 1,1 1 c,f snt11111 42 ,,1 the <l.,t. sh.di ho: rupees one lmndn:o. li::'i 8. Code of Conduct.--1 11 l·1·ln per~on hol<hng ,1 licence, shall adhere lo the codc of l'tonduct ,pcci li,·d bcln" - (i) Even in~urunc,· :11.:ent ~hall.--- ' "' 11 k:1111fy lwnscll and tilt 1nsurailce co111r,,tnv of,,hom he 1s an 111sun111cc ~gent; fh / d1sdu~c his l1cc11cc '" 111.: prn,1,cct 011 lkm:rnd , ,cl d1sscmm.itc the rc·qu1rnc 1111,11111:111011 11i respect of insurance rroducts nffcrl'd !<Jr sale hv hi~ 1nsuri-r and '3k<' 111w .1tcmm1 1he !'<'eds 1>f 1l1e. rnospcct \\hilc n·c1,111mt·nl1Jt1g a specific 111S\ILll1CC plan. tdJ d1csdus<- ,he SL.tks 01 co1111111,sw11 Ill respect of the 1ns11ranc~ pn,;luct offered Jiir sak:. 1f .1s~cd h> 11\..: prosper!. tc·t 111d1ca1c L11,: l'fl'l1H11111 h> l•c d 1:u~ccl hv the 111s1m:r lor the tnsurance product offered for s.ak; HI ,,pl.1111 111 111..: I'" l'cTI "ic: 11:il111c t>l 1111i,1111:tt11111 rcquucd in the proposal lot111 hy tile 1n~u1cr. ,11111 ,d ,, Int· 111q1on,u.-~ nl <11,dusurc ,,f 111utcn;1I 111fonna11n11 111 the p11rd1asc cil ,111 111surancc VtHll11I\ l. tel h111w IP tin: 11011ct• ul tlw i11~111·c1 1111y ml1wsc h.ih1ts or 11Komc 111cons1stc11cy oftlw prospect. 111 111, I-> Ill ul 11 1.p.i11 1,·.ill.-d "l11•a11 :u1, c ,\1:c111·,, < ·11111idc111111I Rcpon'") 1111111!( w111i l'Vc1 v p1·ur,-w1I ,111,111111,·d 11 lh.: J11't11cr ;111d 1111y 111111.:1·1,11 l'act lhul mn\ ,t1lvrr!,clv 11ikrt tile 11nd~rw11hng dc.1,.1011 ,,, 111,, llhllll"I ;1~ i..:µ,uil~ 1,,n•11w11rt ll! tilt prnpo,;ol, hy 1n;1k111g .111 rcas1111,1hlc -,111111111~-. ,110111 llw pr,>~I'"''· !111 11 10•1, pn>mpl I ihl I'"' 111:-11,ho,1I the 111,~phllll, m 1,•1c, 11u11 n1 llll p1npo~nl l,v thl' 111~111~1. I 11 11h111111 II •. 1,:,,111\II, d,,,·1111,~111, :1I Ille IIIIIC ol 11 ling Ilic prnp11,,d 1111111 w11h tla· IIISlll'cr. and \llill)I In 11111 11I~ <11h,1·q111·1lli\ .,·,l·,,·11 1111 hv ti;,• 111s111-cr 101 ,11111pkl!un 111 th, J>llll'""'1l. (j l 'Id, I lit' ·,·~:.111\' I','• \1111(·~ 1,, lilt p,111nlt11ldc1~ 01 l'l,lll11,llll', Ill ht.•11dt,'lll!l~l• Ill lfll11J)!\i11µ \\ Ill 1 • • .. ,,, •• I, , IIIL'IH~lll <1I ,·l:i11•1~ hy iii, lns11t111. I ,, IH:n;\ t.'r llt"t.:~s:--.~1n. (ii) '-lo in,urnnce a1:en1 ,hall.---- ,,unun,tlllHl or u°'s1~1unenl 01 i..:h ... 11,gc ,, .l~h, .,•.;, lie. ,md ofter nccess,1ry .1ss1stJ1tCC' 111 1111, hc'1.11!. laJ ~olicn or proc1u~ :11su1.m.:e hu,1nc,s "11hn111 holdm;; ;1 valid l1cc11..:i.:. (h) indllcr the pmspec1 10 om11 ,lily material 111lom1ation in the proposal lonn (CJ indut·e the pro~pl'U 1,, subm11 wrong 1nlort11at1on in the proposal fonn or documents subm1t1cd In 1hc 1JOsure, 1<,r :1ccq,1,111cc ul tile prorosal: 0 l 19 /d) hcha\'c in .1 d1sco11ne,m.~ manner w1111 the prospect: (,! 1t11crfere -.,·11h am propos"I mtroduced by anv mher 111suram:e agent: 1 r, otrer Llift<:rc111 raies. ddvantagcs. t..:nns :md conditions other than thMc offered b\ l11s msurer; t :.!) demand or rec·.;1vc a share or proceed, rrnn1 Lhe beneficial) um.icr an inslir,111 c .;,1n1ract ! li, l<1rcc .t r,olil:yholdc1 to t.:;m1mall' lhc· ex 1st mg policy and to cffcc1 .1 nc" rroposal from him wnlun three years lr-.m: 11 c date ol ,uch tcnninatton; 1 J !;av::. in c;ise of a c,,rpo1,1r:: ;1!_!cnl . .i portfolio ot insurance busmcss under wl-uch the prcm1u,11 is :r. <excess or lilt\ pert"cnl ol total premium procured, in any year, from one person (who is not ,,n m1hv1tlu;il i or ,,;1-: ,., !!.e111sn11on or 0111.: group of orgamsa11ons. ;mpl, fo; frt.:sh 1,- t:IK<' w acl "' ,Ill insurance agent. 1 f his hccnct: w:is e:1rl1t.!r canc..:lk<l by the ,i~~1_;r"<t~'-- ;,,,r,,on . • u1d J pcnu<l ul tivi:: vea.rs h.i, nut ..:J.1pscd from L11t: dati:: nfsuch can.:dlalion. 11) rc;com~ or r<.:main .1 dm:e1<1r .,f mv 111~uram.:e company. ( iii) I:. very nwr.mcc agc11l ,h.:11, ,, ull a VI<::" tn conserve the msuranc<.: husmess already pmt:,irc<l 1hroui;h him. :n .. kc er\ 1t:::mpt to en~ure rc1uiuance of the rrcm1ums hy Lill' ;iohcyholdc!"$ w11lu11 the.: st1p1.,iated t1111t.:. by i;1v111g 11011cc to the pol1cyholder orally aml m wri1ing; 9. Caoccllution ol licenrc.- ,he (ks1gnatcd pcrson may cancel ,1 licence or an insurance &g.•:111, 1f ll1t: msuran~c agent suffers Jt any tune <lunng the currency of the l1cencc. from any ol" the disquah ficauons mcnt1om:d m suh-scchon (4) of section 42 of the Act, and recover from !um the licence and lhc illcnttlv car<l 1ssu<ld earlier. 10. ls\ue uf duplic.::ne 11,enc(•.- 1 h, ,\othonty m.:y issue ;1 duplicate l1c~nce rerlacc d licence lost. des!nwcd. ,r muulatct.l m, payment J fct. of rupe,~s lilly. I 1. :~on-i1pplication to existing insurance agents. -- l\othing contarned in Rc:gulations 4 to il of these Regu!a11on$ shal, t1pp!y to tl1e e~tslmg agents hefore the commencement of these Rcgulouons. 20 THE GAZETTE OF fNDIA : EXTRAORDINARY JP,\RT 111-S&c. 4) FORM [RDA-AGENTS-VA (!},,e Reg11lr:11011 3) f11sura11ce 11.eRuialury awl Develo(lme/11 .41c1horiry (l1cens111g nj I11s11rrmce Agents/ Regul11tio11x. 2000. APPLICATION FOR r\ LICENCE / RE.'iE'WAL OF LICENCE TO ACT •\SAN INSURANCF. AGENT TO THE !NSVRANCE REGULATORY AND DEVELOPMENT AI.JTHORITY, DEPARTMENT OF LICENSING. 1'."EW DELHI. DEARSlRS. r request that --- me. (a) a licence 10 act as an insurance agent*./ a composite insurance agem" may be granted to (b) *my licence bearmg numbcr _______ _ and expiry date. ____ _ may be renewed for a further pcnod of three years. 2. r hereby declare rhat particulars given below are true and lhar the licence for which J apply will be used only by myself for soliciting or procuring insurance business for one life insurer*, one genera! insurer"' / both"' (l) Name: (2J Father's/Husband's Name (3) Full Address: I I[ J[ lf J[ J[ J[ H Jr If J[ l[ 1( J[ H l ( J[ Jl J[ ]( J[ J[ H J[ ]( H J[ J[ 11 ll J House No. : l ]( ]I J[ ][ J[ ][ J[ J[ ]( J Street· ( J[ ff lf I( J[ ]( J( H Jf ][ J[ ll H J[ ll ]( J[ Jl ll J Town: ( l( ]( J[ J( J[ ][ J[ J[ I( J[ JI ][ )[ I( J[ J[ J[ J[ 11 J Distnct: : f l( J[ J( J[ J[ )[ JI ]( J[ J( ][ l[ I( ]( J[ ll J[ lf Jf J Slate: : r lf ]( J[ ]( )[ J[ If ][ ]( Jr ]( Jl I[ ]( J[ l( JI I[ ]( J Prn Code: : [ J( J[ ]( ll ]( J Telephone No. ( JI )[ Jl i[ )[ )-·-( ]( J[ J[ J( ]( J[ ]( l (STD Code - Number): :4) Date of Birth: Day- Month-Year ( ][ 1-( ] [ 1-( J[ )[ ][ J (5) Title: State I if are Mr .. 2 Mrs., J Miss: [ ] (6) If you ever held a Licence. state No. and uatc of expiry, otherwise say "Nil". (a) Licence Number: (b) Date of Expiry: Day- Month-Year I J[ JI H l [ )( J( J[ J f J [ 1 [ J[ l-1 ][ l·[ H II JI J