Hi. Could you please tell me if I being an employee of XYZ Insurance company can be an insurance agent for the same company? If yes/no, they why (provisions of law)? Can I be an insurance agent for some other ABC insurance company? Please explain.
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Hi. Could you please tell me if I being an employee of XYZ Insurance company can be an insurance agent for the same company? If yes/no, they why (provisions of law)? Can I be an insurance agent for some other ABC insurance company? Please explain.
There is no restriction, you can take licence from XYZ Insurance company or ABC insurance company. Please check attachment for "INSURANCE AGENTS REGULATIONS, 2000" Act.
You cannot take agency in the same insurance company. Above act is amended. See relevant point -
Quote:
Ref: IRDA/CAD/GDL/AGN/016/02/2011
RELATIVES OF EMPLOYEES OF INSURANCE COMPANIES NOT TO BE ENGAGED AS AGENTS
Relatives of employees of insurance companies shall not be engaged as agents by the same insurer. For this purpose, the definition of “relative” shall include spouse, sisters, brothers, parents, sons, daughters - in-law, daughters and sons-in-law.
PolicyWala - These guidelines will come into effect from 1st July, 2011.Quote:
GUIDELINES PERTAINING TO INDIVIDUAL AGENTS
Reference is drawn to circular ref. IRDA/CAD/GDL/AGN/016/02/2011 dated 11th February, 2011 prescribing certain guidelines relating to individual agents in respect of life insurance, which, among others, include prescription of minimum business requirements for individual agents by insurance companies and prohibition of relatives of insurance employees becoming insurance agents. The relevant provisions of the circular are being reproduced below with the stipulation that these provisions shall be for all non-life insurance companies as well.
(1) RELATIVES OF EMPLOYEES OF INSURANCE COMPANIES NOT TO BE ENGAGED AS AGENTS
Relatives of employees of insurance companies shall not be engaged as agents by the insurers. For this purpose, the definition of "relative" shall include spouse, sisters, brothers, parents, sons, daughters -in-law, daughters and sons-in-law.
(2) INSURERS TO LAY DOWN MINIMUM BUSINESS REQUIREMENTS FOR AGENTS
All insurers are required to lay down Minimum Business Requirements for agents and monitor the performance of agents in this regard as often as it is required.
(3) INSURERS TO COMMUNICATE AND MONITOR
Insurers are required to communicate the above guidelines to their agents and take a confirmation from the agents regarding their having received and understood them. Insurers shall monitor the compliance of these guidelines by agents through appropriate software.