Section 8 in The Insurance Regulatory And Development Authority (Licensing Of Insurance Agents) Regulations, 2000
8. Code of conduct .-(1) Every person holding a license, shall adhere to the code of conduct specified below:
(i)Every insurance agent shall,-(a)identify himself and the insurance company of whom he is an insurance agent;(b)disclose his license to the prospect on demand;(c)disseminate the requisite information in respect of insurance products offered for sale by his insurer and take into account the needs of the prospect while recommending a specific insurance plan;(d)disclose the scales of commission in respect of the insurance product offered for sale, if asked by the prospect;(e)indicate the premium to be charged by the insurer for the insurance product offered for sale;(f)explain to the prospect the nature of information required in the proposal form by the insurer, and also the importance of disclosure of material information in the purchase of an insurance contract;(g)bring to the notice of the insurer any adverse habits or income inconsistency of the prospect, in the form of a report (called "Insurance Agent's Confidential Report") alongwith every proposal submitted to the insurer, and any material fact that may adversely affect the underwriting decision of the insurer as regards acceptance of the proposal, by making all reasonable enquiries about the prospect;(h)inform promptly the prospect about the acceptance or rejection of the proposal by the insurer;(i)obtain the requisite documents at the time of filing the proposal form with the insurer, and other documents subsequently asked for by the insurer for completion of the proposal;(j)render necessary assistance to the policy-holders or claimants or beneficiaries in complying with the requirements for settlement of claims by the insurer;(k)advise every individual policy-holder to effect nomination or assignment or change of address or exercise of options, as the case may be, and offer necessary assistance in his behalf, wherever necessary;(ii)No insurance agent shall-(a)solicit or procure insurance business without holding a valid license;(b)induce the prospect to omit any material information in the proposal form;(c)induce the prospect to submit wrong information in the proposal form or documents submitted to the insurer for acceptance of the proposal;(d)behave in a discourteous manner with the prospect;(e)interfere with any proposal introduced by any other insurance agent;(f)offer different rates, advantages, terms and conditions other than those offered by his insurer;(g)demand or receive a share of proceeds from the beneficiary under an insurance contract;(h)force a policy-holder to terminate the existing policy and the effect a new proposal from him within three years from the date of such termination;(i)have, in case of a corporate agent, a portfolio of insurance business under which the premium is in excess of fifty per cent. of total premium procured, in any year, from one person (who is not an individual) or one organisation or one group of organizations;(j)apply for fresh license to act as an insurance agent, if his license was earlier cancelled by the designated person, and a period of five years has not elapsed from the date of such cancellations;(k)become or remain a director of any insurance company;(iii)Every insurance agent shall with a view to conserve the insurance business already procured through him, make every attempt to ensure remittance of the premiums by the policy-holders within the stipulated time, by giving notice to the policy-holder orally and in writing.
