Reference is drawn to Insurance Regulatory and Development Authority of India (Registration of Insurance Marketing Firm) Regulations, 2015 notified in January, 2015 and the Insurance Regulatory and Development Authority of India (Registration of Insurance Marketing Firm) (First Amendment) Regulations, 2016 notified in January, 2017. The channel is in operation for three years. Operational feedback was obtained from various stakeholders, viz. Insurance Marketing Firms, insurance companies and the Insurance Councils through workshops conducted in May, 2018.
Subsequently, the Authority had constituted a “Committee for Review of IMF Regulations” for reviewing the said Regulations. Based on the recommendations of the Committee, a review of the existing framework governing Insurance Marketing Firms has been undertaken.
1) The following are some of the key changes proposed to the current Regulations:
a) Reduction of net worth requirement to rupees five lakhs for applicants opting for an aspirational district, designated as such by the Government of India viz. NITI Aayog.
b) Expansion of area of operation of an Insurance Marketing Firm to a maximum of three districts within a state.
c) Expansion of the scope of work of Principal Officer, to include solicitation and procurement of insurance business.
d) Expansion of the basket of products which can be solicited or procured by an Insurance Marketing Firm to include group insurance products for Micro Small and Medium Enterprises (MSMEs); crop insurance for non-loanee farmers and combi products.
e) Increase in the threshold of change in shareholding beyond which approval of the Authority is required from 10% to 25%.
f) Simplification of process of resignation of Insurance Sales Person.
g) Reduction in work experience requirement of Principal Officer, and inclusion of various professional qualifications in the eligibility criteria for Principal Officer.
h) Relaxation of training and examination requirement for Principal Officer, if the person has undergone training and examination required for Principal Officer of an insurance broker.
i) Criteria of ‘domicile’ for Insurance Sales Person changed to ‘resident’.
2) The draft Insurance Regulatory and Development Authority of India (Registration of Insurance Marketing Firm) Regulations, 2018 is placed herewith as Annexure I.
3) All the stakeholders are requested to offer their comments, suggestions on the proposed draft regulations for further examination at our end. The comments, suggestions may be sent to firstname.lastname@example.org latest by 15th December, 2018 in the format enclosed as Annexure II (MS-WORD).
4) This has the approval of the Competent Authority.
(For Annexures please download the attached .ZIP file)