Page 50 - Insurance Times July 2021

immediately take such steps including appointment by the intermediary do not comply with the Regulatory
of another TPA, if any, as may be necessary to provisions.
continue to cater to the policy holders served by 2. Objective
Grand TPA. The objective of these guidelines is to specify the
ii. Grand TPA shall cooperate with insurance professional indemnity policy that meets the regulatory
companies in making suitable alternate requirements.
arrangements to service the policy holders in 3. General
respect of whom the policies are in force. These Guidelines for Professional Indemnity Policy for
iii. Grand TPA shall, reconcile and close the accounts Insurance Brokers, Corporate Agents, Insurance Web
with concerned insurance companies and network Aggregators and Insurance Marketing Firms are issued
providers, if any. in exercise of the powers conferred upon the Authority
iv. Grand TPA shall submit the data collected and the under clause (i) of sub section (2) of Section 14 of IRDA
Act, 1999.
books, records or documents etc., relating to the
TPA business carried on by it to respective insurers 4. Guidelines on Standard Professional Indemnity Policy
v. Grand TPA and all the insurers shall comply with the for Insurance brokers/ Corporate Agents/ Web
applicable provisions of Regulation 18 of IRDAI (TPA Aggregators/ IMF
- Health Services) Regulations,2016. a. The standard professional indemnity policy shall
vi. Grand TPA is advised to remove the word have the mandatory covers as specified in these
“Insurance TPA” from the name of its Company and Guidelines which shall be uniform across the
that they shall not function as TPA. market.
b. The standard professional indemnity policy shall
vii. All the insurance companies that have engaged the
services of Grand TPA shall submit an action taken comply with all extant provisions as per guidelines
Ref. IRDAI/NUGDLIF&U/030/02/2016 dated 18th
report to General Manager (Health), lRDAl,
February, 2016 as amended from time to time.
Hyderabad in respect of the above directions within
three months from the date of this order. c. Every General insurer, who has been issued a
If the TPA feels aggrieved by the decision of this order, an Certificate of Registration to transact General
appeal may be preferred to the Securities Appellate Tribunal Insurance Business, shall endeavour to offer this
Standard Professional Indemnity for insurance
as per Section 110 of the Insurance Act, 1938.
brokers, corporate agents, web aggregators and
MEMBER (Non-Life) insurance marketing firms.
(S. N . Rajeswari)
Guidelines on Standard Professional
Member (Distn)
Indemnity Policy for Insurance Brokers/
Corporate Agent/ Web Aggregators/ IMF Indian Insurance Companies (Foreign

IRDAI/ INT/ GDL/ 146/ 05/ 2021 Investment) Amendment Rules, 2021
24th May, 2021 19th May, 2021

1. Preliminary G.S.R. 337(E).—Whereas, certain draft rules, namely, the
The insurance intermediaries engaged in solicitation Indian Insurance Companies (Foreign Investment)
and distribution of insurance products, viz., Insurance Amendment Rules, 2021, were published in the Gazette of
Brokers, Corporate Agents, Insurance Web India, Extraordinary, Part II, Section 3, Subsection (i), dated
Aggregators, Insurance Marketing Firms are required 15th April, 2021 under the notification of the Government
to take Professional Indemnity Insurance Policies in of India in the Ministry of Finance (Department of Financial
order to get themselves indemnified from the claims Services) number G.S.R. 266 (E), dated the 13th April, 2021,
lodged against them, arising out of the contingencies inviting suggestions from persons likely to be affected
mentioned in the regulations governing them. There thereby within a period of fifteen days from the date on
have been numerous instances where the policy taken which they are published; And whereas suggestions received

50 The Insurance Times, July 2021