Page 9 - Insurance Times December 2018

Clarifications on Renewal Exposure Draft on IRDAI (Registration of Insurance Mar-
Conditions under Regula- keting Firm) Regulations, 2018
Reference is drawn to Insurance Regulatory and Development Authority of In-
tion 6 (3) (a) (v) of IRDAI
dia (Registration of Insurance Marketing Firm) Regulations, 2015 notified in
(Insurance Surveyors and January, 2015 and the Insurance Regulatory and Development Authority of In-
Loss Assessors) Regula- dia (Registration of Insurance Marketing Firm) (First Amendment) Regulations,
2016 notified in January, 2017. The channel is in operation for three years.
tions 2015 Operational feedback was obtained from various stakeholders, viz. Insurance
After enactment of IRDA Act, 1999, Marketing Firms, insurance companies and the Insurance Councils through
IRDAI was empowered to grant li- workshops conducted in May, 2018.
cense to Surveyors and loss asses- Subsequently, the Authority had constituted a "Committee for Review of IMF
sors. In the year 2001-02, Authority Regulations" for reviewing the said Regulations. Based on the recommendations
carried out the one-time exercise of of the Committee, a review of the existing framework governing Insurance
categorization of then practicing li- Marketing Firms has been undertaken.
censed surveyors and categorization Proposal
letters were issued to all those sur-
1) The following are some of the key changes proposed to the current Regu-
veyors who participated in the cat- lations:
egorization exercise at the time of a) Reduction of net worth requirement to rupees five lakhs for applicants
enactment of IRDAI Act based on opting for an aspirational district, designated as such by the Govern-
their educational qualification and ment of India viz. NITI Aayog.
past experience etc. Categorization
letter issued by the Authority dis- b) Expansion of area of operation of an Insurance Marketing Firm to a
plays the departments in which they maximum of three districts within a state.
are eligible to work. c) Expansion of the scope of work of Principal Officer, to include solicita-
tion and procurement of insurance business.
In order to renew the licenses of the
d) Expansion of the basket of products which can be solicited or procured
above surveyors and loss assessors,
Authority recognizes their categori- by an Insurance Marketing Firm to include group insurance products
zation as stated under Regulation for Micro Small and Medium Enterprises (MSMEs); crop insurance for
non-loanee farmers and combi products.
6(3)(a)(v) of IRDAI (Insurance Survey-
ors and Loss Assessors) Regulations, e) Increase in the threshold of change in shareholding beyond which ap-
2015 and such Surveyors and Loss proval of the Authority is required from 10% to 25%.
Assessors are not required to pos- f) Simplification of process of resignation of Insurance Sales Person.
sess any other requisite qualification g) Reduction in work experience requirement of Principal Officer, and in-
as specified in Schedule - I Annexure clusion of various professional qualifications in the eligibility criteria
- 1of Surveyors Regulations 2015. for Principal Officer.

Applicable Provision of Regulation h) Relaxation of training and examination requirement for Principal Of-
6(3)(a)(v): ficer, if the person has undergone training and examination required
Proof of qualification(notarized) or for Principal Officer of an insurance broker.
categorization letter issued by the i) Criteria of 'domicile' for Insurance Sales Person changed to 'resident'.
Authority stating the eligible Depart- 2) The draft Insurance Regulatory and Development Authority of India (Reg-
ments in accordance with the cat- istration of Insurance Marketing Firm) Regulations, 2018 is placed herewith
egorization made vide IRDA/Order/ as Annexure I.
SLA/30/3/2002 dated 30thMarch,
3) All the stakeholders are requested to offer their comments, suggestions on
2002.
the proposed draft regulations for further examination at our end. The com-
The above clarification is issued un- ments, suggestions may be sent to imf@irda.gov.in latest by 7 December,
der Regulation 26 of IRDAI (Insur- 2018 in the format enclosed as Annexure II (MS-WORD).
ance Surveyors and Loss Assessors) 4) This has the approval of the Competent Authority.
Regulations, 2015.
Suresh Mathur
Sujay Banarji, Member(Distribution)
Executive Director
The Insurance Times, December 2018 9