Insurance sector regulator IRDA on Friday said life insurers will be given a “one—time chance” to renew dormant licences by this year—end.
“It has been decided to grant one—time chance to all insurers to float campaigns to renew the archived agency licences,” Insurance Regulatory and Development Authority (IRDA) said in a circular, adding they can send their request for renewal up to December 31, 2013.
“Beyond this date no request for renewal of archived licence will be entertained,” the circular said.
It said a large number of licences had become dormant resulting in increase in number of orphan policies as many agents had not submitted their Permanent Account Number (PAN) or their licences were lapsed for more than a year.
“Therefore, the policyholders insured through these agents are facing servicing problems with the insurers,” it said.