In February 2011 IRDA had issued Guidelines for Individual Agents for Persistency of Life Insurance Policies. Now IRDA has made these guidelines applicable to corporate insurance agents as well. The whole guidelines will be applicable to corporate agents with immediate effect.
Reference is invited to IRDAâ€™s Circular Ref: IRDA/CAD/GDL/AGN/016/02/2011 dated 11th February, 2011 regarding â€˜Guidelines for Individual Agents for Persistency of Life Insurance Policiesâ€™.
In partial modification to Clause III (e) of the said guidelines, it is clarified that the requirement of Insurers to endorse the record referred to in the said clause is now dispensed with. It may, however be noted that maintenance of records of policies sold and their persistency on a year to year basis needs to be complied by all agents and life insurers as stipulated.
Further all the provisions of the above referred Guidelines as modified vide IRDA Circular IRDA/Life/GDL/GLD/217/09/2011 dated 20th September, 2011 together with the above referred exemption are now made applicable to Corporate Agents that solicit life insurance business.
However, it is also clarified that Clause (5) of Modified Guidelines (Relatives of employees of Insurers) issued vide Circular IRDA/Life/GDL/GLD/217/09/2011 dated 20th September, 2011 is not applicable to the Corporate Agents.
The stipulated persistency rate requirements will be effective for all Corporate Agency renewals that are due from 01st July, 2014. All other provisions of the above referred circulars are â€˜mutatis mutandisâ€™ applicable to Corporate Agents.
The above guidelines are issued under Section 14 (2) of the IRDA Act, 1999 and all Insurers are requested to put in place procedures for effective implementation of the same.