New IRDA Rules for transfer of Agency / Corporate Agency License from one insurer to another

As per laid down procedures of IRDA, for transfer of Agency / Corporate Agency License from one insurer to another. IRDA has mandated Agents / Corporate Agents to submit a "No Objection Certificate" to transferee insurer which is obtained from transferor insurer.

Instances have been observed that the transferor insurers are making in ordinate delay in issuing " No Objection Certificate" to Agents / Corporate Agents even after complying with the provisions of the transfer. Further , it is also informed by the insurers that the Agents / Corporate Agents are seeking transfer without contributing much business to them. In view of this, it has been decided, by IRDA,

1- Not to allow any Agents / Corporate Agents to seek transfer of License within One Year from the date of gran of their License.
2- Further, Agent / Corporate Agent shall seek transfer without achieving the Minimum Business Norms mandated by the respective Insurers.
3- The Insurers shall grant "No Objection Certificate within One week of receipt of the request subject to compliance with provisions of Circular referred above.
4- In case No Objection certificate cannot be granted within stipulated time frame, the Insurer shall record the reasons for non issuance of NOC in portal and shall ensure compliance by the agent of the provisions of the above Circular within one month of request except in case of fraud or serious complaint.
5- In case no pertinent reason is recorded within one week and one month time period is elapsed from the date of request, those requests will be deemed to have been granted NOC and transfer will be effected in portal.

Source - Ref: IRDA/CAGTS/CIR/142/07/2013 (See attachment)