Section 23 in Insurance Regulatory and Development Authority of India (Registration of Corporate Agents) Regulations, 2015
23. Arrangements with insurers for distribution of products.
(a)Corporate agents registered under these regulations shall have to enter into arrangements with insurers for distribution of their products. These arrangements shall have to be disclosed to the Authority within 30 days of entering into such arrangements. The minimum period of such arrangement shall be for one year;(b)While entering into such arrangements, no corporate agent shall promise nor any insurer shall compel the corporate agent to distribute the products of a particular insurer;(c)Arrangements shall have provisions to include duties and responsibilities of corporate agents towards the policyholders, duties and responsibilities of insurers and corporate agents, terms and conditions for termination of arrangements; .(d)No arrangements shall be made against the interests of policyholders;(e)In case a corporate agent wishes to terminate arrangement with any insurer, they may do so after informing the insurer and the Authority, the reasons for termination of arrangement. In such cases, they shall ensure that the policies solicited and placed with the insurer are serviced till the expiry of policies, or for a period of six months, whichever is earlier within which time they shall make suitable arrangements with the concerned insurer,(f)In case an insurer wishes to terminate the arrangement with any corporate agent, they may do so after informing the corporate agent and the Authority, the reasons for termination of arrangement. In such cases, the concerned insurer shall take the responsibility of servicing the policies procured by the corporate agent. In all such cases, the insurer shall inform the policyholder concerned of the changes made in servicing arrangements;(g)No insurer shall pay and no corporate agent shall receive any signing fee or any other charges by whatever name called, except those permitted by the Authority under relevant regulations, for becoming its corporate agent;(h)No insurer shall directly pay incentives (cash or non-cash) to the principal officer, specified persons and other employees of the corporate agents;(i)The Authority may, at any point in time, direct any insurer or corporate agent to terminate the distribution arrangements by recording the reasons there for.
