No agent can transfer corporate licence in 1 yr: IRDA

India Infoline News Service | Mumbai |

These norms will be implemented with immediate effect

The Insurance Regulatory and Development Authority (IRDA) on Thursday said no agent / corporate agent can seek transfer from one insurer to another within one year of grant of licence.

The insurance regulator said no such transfer would be allowed if these agents do not achieve the minimum business norms mandated by the insurer.

Instances have been observed that the transferor insurers are making in ordinate delay in issuing "No Objection Certificate" to agents/corporate agents,
the IRDA said in a circular issued on 25th July.

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 not to allow any agents/corporate agents to seek transfer of license within one year from the date of grant of their license. No agent/corporate agent shall seek transfer without achieving the minimum business norms mandated by the respective insurers, it added.

At present, agents / corporate agents have to submit a 'No Objection Certificate' (NOC) to transferee insurer from the transferor insurer. IRDA has further asked insurers to give the NOC within one week.

These norms will be implemented with immediate effect.
 

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