Sourcing of Motor Business through Agents and Intermediaries.

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• JI~ ~ 1ufl4 ~ ~R41qefi 3fu ~etilfl ~ a;mm INSURANCE REGULATORY AND inlai DEVELOPMENT AUTHORITY OF INDIA Ref: IRDA/NL/CIR/MISC/024/02/2016 February 10, 2016 CIRCULAR To All General Insurance Companies It is well known fact that policyholders have a prerogative to choose any agent, intermediary or any insurer to avail of insurance services. Of late, it has come to the notice of the Authority that some general insurance companies having tie-ups with a particular motor dealer are not accepting motor business, if it is sourced by any other agent or intermediary. Similar issue has also been observed where some insurers offer personal accident policies along with such motor policies. 2. In the above background, with a view to protect the interests of policyholders and prevent unhealthy market practices and, in exercise of powers vested in the Authority under Section 14 of !RDA Act, 1999, it is hereby clarified that there shall be no restriction whatsoeve.r on sourcing/servicing of motor insurance business (including personal accident policies, wherever applicable) by any agent/intermediary or insurer/insurance office on the ground that they have tie-up with any motor dealers/manufacturers etc. Further, it shall be ensured that no clause/agreement/tie-up in variation with the above directions shall be entered into by any insurer with any motor dealers/ manufacturers etc. It should also be ensured that all existing agreements confirm with the above direction. 1:fft~ 'ltcR, <ITTro~, iil!ln{cillll , ~-500 004. m@ t : 91-040-2338 1100, %cm: 91 -040-6682 3334 t-~: irda@irda.gov.in ~: www.irda.gov.in (T S Vijayan) Chairman 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