Section 9 in The Insurance Regulatory and Development Authority (Sharing of Database for Distribution of Insurance Products) Regulations, 2010
9. Restrictions on the business activities of the referral company. -
The referral company that has been approved by the Authority and registered with the insurer shall not:(a) carry out the sale of insurance products in its premises or elsewhere, at all times;(b)undertake any insurance related activity except activities in the nature of sharing of the database of its customers for the sale or distribution of insurance products;(c)create a database of its customer groups by specifically soliciting or scouting prospective policyholders, for the sale or distribution of the insurance products;(d)provide details of its customers without their prior consent or provide details of any person/firm/company with whom they have not had any recorded business transaction;(e)receive any payment from the insurer for providing the database of its customers, over and above the remuneration as outlined in sub-regulation (7) of regulation 11;(f)receive any payment for providing the database of its customers from a person involved in insurance related activity other than an insurer;(g)be licensed/registered as an insurance agent, corporate agent, micro insurance agent or a broker under the relevant Regulations framed by the Authority;(h)enter into a referral arrangement with more than one life and/or one general insurance company and/or one stand alone health insurance company;(k)earn more than 10% of its total income from the referral business with an insurer or any other organization not involved in any insurance related activity, at any time during the tenure of the referral arrangement;(l)acquire at any time, databases with the express purpose of selling it to insurers or any other organization not involved in any insurance related activity.
