Money & Banking

Stringent norms for general insurance agents

Our Bureau Hyderabad | Updated on February 16, 2011

You can now expect better service in your car or health insurance policy as general insurers are now subjected to strict norms on individual agents.

Extending the guidelines on agents in life insurance companies, issued last week, to general insurance companies, the Insurance Regulatory and Development Authority said all insurers should put in place minimum business requirements for agents. Their performance should also be monitored ‘as often as it is required,' it said.

Relatives of employees of insurance companies should not be engaged as agents. “The definition of relative shall include spouse, sisters, brothers, parents, sons, daughters -in-law, daughters and sons-in-law,'' Mr A. Giridhar, Executive Director, IRDA, said in a circular.

The insurers should also monitor the compliance of these guidelines by agents through appropriate software, he added.

The guidelines would come into effect from July 1.

Published on February 16, 2011

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