IRDA has relaxed the definition of ‘Relatives’ for the employees of Insurance Companies, who are looking to engage as Agents. Now as per new IRDA circular, “The term relatives is re-defined as spouse, dependent children or dependent step children whether residing with the employee or not.”
These new changes applicable to the employees of both life and general insurance companies. In its earlier circular (On 11th February 2011), IRDA had said that relative would include spouse, sisters, brothers, parents, sons, daughters-in-law, daughters and sons-in-law.
This clause is applicable only in respect of agents who are licensed or whose agency is transferred to another insurer on or after 01st July, 2011.