IRDA Relaxes Insurance Qualification Clause of the Corporate Agent

Insurance Regulatory and Development Authority (IRDA) had issued new Guidelines for Corporate Agents on 14th July, 2005 which included the Clause 7 that the Chief Insurance Executive, the designated officer and other specified persons who will be employed by the insurance companies should be whole time employees of the applicant. Atleast one of the persons should have insurance qualification to the extent of FFII or AFII or such qualification or experience that IRDA may at its sole discretion, consider adequate.

In December 2005, IRDA clarified that-

i) In so far as issuance of new licenses of Corporate Agents are concerned, there shall be no relaxation whatsoever of the Guidelines dated 14th July, 2005.

ii) However, in case of existing licenses that come up for renewal, the above Clause 7 of the Guidelines will not be enforced till 1st April, 2007 and the renewal will be provisional subject to review by 1st April, 2007.

iii) All other provisions of the Circular dated 14th July, 2005 shall be implemented in toto.

The Authority has received a number of representations from the Insurers seeking extension of above relaxation on the ground that persons with FFII & AFII or equivalent qualifications are still not readily available and CIE or SP are in the process of acquiring the said qualification. Hence, the above relaxation is extended till 1st April, 2008.

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