IRDA proposes draft norms on micro insurance plans

India Infoline News Service | Mumbai |

The IRDA has invited feedback on the revised set of proposals by February 14. After this, the final set of regulations will be drafted

The Insurance Regulatory and Development Authority (IRDA) has issued a revised set of proposals on micro insurance products.
The IRDA has invited feedback on the revised set of proposals by February 14. After this, the final set of regulations will be drafted.
They shall come into force on the date of their publication in the Official Gazette, IRDA said.
According to the IRDA draft, partial withdrawals may be permitted from the second policy year onwards, subject to ensuring maintenance of a minimum balance equivalent to one annual premium in the policy account.
An insurer may sign a deed of agreement with a person or entity whose micro insurance agency agreement was terminated (other than on grounds of fraud or misconduct) only after the expiry of three months.
No insurer will be allowed to re-appoint a micro insurance agent whose services were ended on grounds of fraud or misconduct.
After any such termination of an agent’s services, the policies of the agent may be allotted to another of the same insurer, after getting the latter’s consent.
A micro insurance agent may work with One Life Insurance Company and one General Insurance Company. In addition to this a Micro Insurance Agent may also work with Agriculture Insurance Company of India Ltd for distributing micro insurance products of Crop Insurance and with any one of the standalone life insurance companies registered with the Authority for distribution of health insurance products of the respective standalone health insurance company, IRDA added.
In addition to One Life Insurance Company and one General Insurance Company, a Micro Insurance Agent may work with Agriculture Insurance Company of India Ltd for distributing micro insurance products of Crop Insurance and with any one of the standalone life insurance companies registered with the Authority for distribution of health insurance products of the respective standalone health insurance company, IRDA further said.
Every Insurer shall mandate that their respective Micro Insurance Agents shall issue acknowledgement receipts on collection of premiums and every Insurer shall put in place procedures to enable Micro Insurance Agents issue such acknowledgment receipts.
Insurers are accountable to the premium acknowledgements issued by their respective Micro Insurance Agents.
 

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