What is a Corporate Agent?
A corporate agent is referred to as an insurance entity that can solicit insurance policies of 2 insurance companies. The companies are of any the following kinds:
- Life insurance company, and
- General Insurance company, and
- Health Insurance Company, and
- Composite Insurance company
To act as a corporate agent, an entity has to adhere to the IRDAI Regulations of 2015. Thus, it has to obtain the certificate of registration from Insurance Regulatory Development Authority of India.
This article discusses the conditions under which the IRDA grants that Corporate Agent Registration in India.
Conditions of grant of Registration to corporate agent
In order to obtain the certificate of registration or to renew it, the Corporate agent must adhere to the following conditions:
Only dealing with Insurance policies
The corporate agent must only deal in insurance policies and activities mentioned in regulation 3 of the Corporate Agent Regulations. If corporate agent provides services that go beyond the scope of IRDA regulations, it won’t receive the license.
Must follow the IRDA regulations
The corporate agent must adhere to the regulations of IRDA, 1999. Furthermore, IRDA expects for the corporate agent to stay updated with the updated IRDA regulations at all times.
Must inform the IRDA of any wrong information in the license
If the corporate agent has obtained their corporate agent license based on any wrong information, it’s the agent’s duty to inform the IRDA. In case IRDA later finds out about the discrepancies, it won’t only cancel the corporate agent license, but also prohibit the entity from applying for another license for a certain period of time.
Must address client’s grievances within the specified time
The corporate agent must addresses the grievances of its clients within 14 days of receiving them. Additionally, said corporate agent must inform IRDA about the nature of those grievances and the solutions provided to the client as per the timeline that IRDA specifies. Read More: Trust Registration
Must only take on projects it can handle
The corporate agent should only procure and solicit insurance policies that it can deliver to the customers.
Must Maintain relevant insurance records
It’s imperative that the agent maintains a record of each insurance policy solicited. From time to time, IRDA might conduct a surprise inspection of the corporate agent’s premises. And, it might require said record on a priority basis.
Thus, a corporate agent must maintain a record in which it will specify person-wise and policy-wise details of each insurance policies that it has solicited.
No multi-level marketing within the corporate agency
No corporate agency is allowed to conduct multi-level marketing: Multi-level marketing or pyramid scheme marketing is seen by the IRDA with the eyes of derision.
Not only such schemes have the potential to misappropriate insurance companies, they can only prove detrimental to the welfare of the insured.
Thus, no corporate agency must partake in multilevel marketing at any point during the validity of its corporate agent license.
Complying to the Code of Conduct
All directors, principal officer and Key management personnel of a corporate agency must adhere to the Corporate Agent Code of Conduct at all times. Any sign of wrongdoing can lead to cancellation of its license.
Maintaining a separate books of accounts
It’s mandatory for a corporate agent to maintain a separate books of accounts pertaining to its insurance business. The IRDA might ask to review that books of accounts from time to time to verify the agency’s compliance to the IRDA regulations. Read More: Society Registration
A corporate agent must not only go through a multitude of steps, and adhere to a multitude of regulations to obtain the corporate agent license. It also has to maintain the integrity of its business to maintain it.
Insurance Regulatory Authority of India undertake strict measures to maintain the fidelity of the insurance sector in India. Therefore, it’s advised that the corporate agent always comply with the IRDA regulations.