Laws and sections by number or title, due dates, pages, and updates.
No summary yet. Read the regulation below or open the official pdf.
Page 1 of 62 INSURANCE REGULATORY AND DEVELOPMENT AUTHORITY OF INDIA (REGISTRATION OF INSURANCE MARKETING FIRM) REGULATIONS, 20151 (amended upto 26.07.2019) F. No. IRDAI/Reg/1/91/2015. —In exercise of the powers conferred by Section 114A of the Insurance Act,1938 (4 of 1938), as amended from time to time, read with sections 14 and 26 of the Insurance Regulatory and Development Authority Act, 1999 (41 of 1999) and sections 42D and 42E of Insurance Act, 1938, as amended from time to time, the Authority in consultation with the Insurance Advisory Committee, hereby makes the following regulations, namely: - 1. Short Title and Commencement of the Regulations: 1.1 These Regulations may be called the Insurance Regulatory and Development Authority of India (Registration of Insurance Marketing Firm) Regulations, 2015. 1.2 They shall come into force on the date of their publication in the Official Gazette. CHAPTER I Preliminary 2. Definitions: 2.1 “Act" means the Insurance Act, 1938 (4 of 1938), as amended from time to time. 2.2 “Applicant” means _ a. A company formed under the Companies Act, 2013 (18 of 2013) or any enactment thereof or under any previous company law which was in force; or b. A limited liability partnership formed and registered under the Limited Liability Partnership Act, 2008; or c. Co-operative Societies registered under Co-operative Societies Act, 1912 or under any law for registration of Co-operative Societies; or d. Any other person as may be recognized by the Authority to act as an Insurance Marketing Firm. 2.3 “Approved Institution” means an institution engaged in education and/or training particularly in the area of insurance sales, service and marketing, approved and notified by the Authority from time to time. 2[2.3A “Aspirational District” means a district designated as such by the NITI Aayog, Government of India or any other economically backward district, as may be recognized by the Authority.] 1 Vide Notification No. IRDAI/Reg/1/91/2015, published in the Gazette of India, ExtraOrdinary, Part III, Sec.4, vide No.34, dated 21.01.2015, w.e.f. 29.01.2015. 2 Inserted by the Insurance Regulatory and Development Authority of India (Registration of Insurance Marketing Firm) (Amendment) Regulations, 2019 dated 24.07.2019, w.e.f. 26.07.2019. Page 2 of 62 2.4 "Authority" means the Insurance Regulatory and Development Authority of India established under the provisions of Section 3 of the Insurance Regulatory and Development Authority Act, 1999 (41 of 1999). 2.5 “Examination Body” for the purpose of these Regulations is the examination body approved by the Authority for conducting certification exams. 2.6 “Financial Service Executive” (FSE) is an individual employed by Insurance Marketing Firm and holding a valid licence issued by respective financial regulators, other than the Authority, to market products specified in regulation 3(c) of these regulations. 2.7 “Fit and Proper” is the criteria for determining the suitability for licensing an Applicant including his principal officer, directors or partners to act as Insurance Marketing Firm. 2.8 “Insurance Marketing Firm” is an entity registered by the Authority to solicit or procure insurance products as specified in regulation 3(a) of these regulations, to undertake insurance service activities as specified in regulation 3(b) of these regulations and to distribute other financial products as specified in regulation 3(c) of these regulations by employing individuals licensed to market, distribute and service such other financial products. 2.9 "Insurance Sales Person" (ISP) is an individual employed by Insurance Marketing Firm to solicit or procure insurance products3[***]. 2.10 “Insurance Servicing Activity” means the activities specified in regulation 3(b) of these regulations. 2.11 "Principal Officer” of Insurance Marketing Firm means a director or a partner or any officer or employee so designated by it, and approved by the Authority, to exclusively 4[carry out the functions] of Insurance Marketing Firm and who possesses the requisite qualifications and practical training and who has passed examination as required under these Regulations. 2.12 “Regulations” means Insurance Regulatory and Development Authority of India (Registration of Insurance Marketing Firm) Regulations, 2015. 2.13 Words and expressions used and not defined in these Regulations but defined in the Act, as amended from time to time, the Insurance Regulatory and Development Authority Act, 1999 or in any of the Regulations/Guidelines made there under shall have the meanings respectively assigned to them in those Acts/Regulations/Guidelines. 3 The words “and who holds a valid certificate issued by the Authority for the purposes of the same” omitted by the Insurance Regulatory and Development Authority of India (Registration of Insurance Marketing Firm) (Amendment) Regulations, 2019 dated 24.07.2019, w.e.f. 26.07.2019. 4 Substituted for the words “supervise the activities” by the Insurance Regulatory and Development Authority of India (Registration of Insurance Marketing Firm) (Amendment) Regulations, 2019 dated 24.07.2019, w.e.f. 26.07.2019. Page 3 of 62 3. Scope and applicability of these Regulations: These regulations shall cover 5[a. (i) Tie-ups with insurers: The Insurance Marketing Firms (IMF) shall engage Insurance Sales Persons (ISP) for the purpose of soliciting and procuring insurance products of maximum of two Life insurers, two General insurers and two Health insurers at any point of time, under intimation to the Authority. Provided that in addition to two General insurers, Insurance Marketing Firm shall have option to engage with Agriculture Insurance Company of India Ltd. (AIC) and Export Credit Guarantee Corporation Ltd.(ECGC). Provided further that any change in the engagement with the insurers shall be governed by the terms of the agreement entered into between the Insurance Marketing Firm and the insurer, with suitable arrangements for servicing existing policyholders by the concerned insurer, in case of cancellation/termination/discontinuity of agreement. The Insurance Marketing Firm shall intimate the Authority of any such change in the engagement with insurers in the format specified by the Authority in this behalf. (ii) Products allowed for Insurance Marketing Firms: The Insurance Marketing Firm shall be allowed to solicit or procure: 1. all kinds of products sold on individual and / or retail basis, including crop insurance for non-loanee farmers and combi products. 2. property, group personal accident, group health, GSLI and term insurance policies for Micro, Small and Medium Enterprises (MSME). The IMF shall not be allowed to solicit and procure commercial lines of business for any segment except for MSMEs. Explanation: For the purpose of these Regulations, a. “Combi products” mean any combination of products of life, general and health insurance as approved by the Authority. b. “Micro, Small and Medium Enterprises” shall have the meaning as defined in ‘The Micro, Small and Medium Enterprises Development Act, 2006’, as amended from time to time.] 5 Substituted by the Insurance Regulatory and Development Authority of India (Registration of Insurance Marketing Firm) (Amendment) Regulations, 2019 dated 24.07.2019, w.e.f. 26.07.2019. Prior to substitution, Regulation 3(a) read as under: “Registration of Insurance Marketing Firm by engaging ISP for the purpose of soliciting and procuring Insurance Products of maximum of two Life, two General and two Health Insurance companies at any point of time, under intimation to the Authority. Provided that in respect of general insurance, the Insurance Marketing Firm shall be allowed to solicit or procure only retail lines of insurance products as given in the file & use guidelines namely motor, health, personal accident, householders, shopkeepers and such other insurance products approved by the Authority from time to time. Provided further that any change in the engagement with the insurance companies shall be done only with the prior approval of the Authority and with suitable arrangements for servicing existing policyholders.”
