Section 6(1) in The Insurance Regulatory and Development Authority (Sharing of Database for Distribution of Insurance Products) Regulations, 2010
(1)For the grant of approval of the referral company, the insurer shall ensure the fulfillment of the conditions including but not limited to the following:-(a) The referral company is a company formed and registered under the companies Act, 1956 (1 of 1956) unless otherwise provided under sub-regulation (b) of regulation 6 of these regulations;(b)The referral company is not in any of the businesses of extending loans and advances, accepting deposits, trading in securities on its own account or on the accounts of the customers;Provided that any bank including a Regional Rural Bank or a co-operative bank that is not eligible for grant of corporate agency license under the relevant eligibility criteria stipulated by the Reserve Bank of India may be approved as a referral company, subject to such conditions as may be imposed by the Authority and the Reserve Bank of India; Provided further that any other department or organization of the Government may also be approved as a referral company subject to such conditions as may be imposed by the Authority;(c) The referral company is engaged in a business that has no linkage, direct or indirect, with the transaction or distribution of the business of insurance;(d)The referral company does not carry out the sale or promotion of insurance products in its premises or elsewhere at all times;(e)The referral company, has a minimum net worth of rupees fifty lakhs and a minimum turnover of rupees one crore during the previous three consecutive years;(f)The referral company has a database of its customers acquired through its business;Provided that a company whose main business is acquisition and sale of client data shall not be eligible to be a referral company;(g) The referral company does not have an existing referral arrangement with an insurer carrying out the same class of insurance business;(h)The referral company is not bound by any confidentiality agreement in the matter of sharing the personal and financial databases of its customers;
