Irda issues draft norms for corporate agentshttps://indianexpress.com/article/business/business-others/irda-issues-draft-norms-for-corporate-agents/

Irda issues draft norms for corporate agents

The draft says that an agent can have arrangements with a maximum of three insurers.

Following the passage of the Insurance Laws (Amendment) Bill, 2014, that defines corporate agents as intermediary, the Insurance Regulatory and Development Authority (Irda) on Tuesday came out with draft norms that looks to cap the amount of premium that a corporate agent can place with one insurer at a maximum of 50 per cent from the fourth year onwards.

While the draft says that an agent can have arrangements with a maximum of three insurers it looks to end the exclusive arrangement that corporate agents have with an insurer.

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“No corporate agent shall place more than 90 per cent of the premium with any one insurer in the first year, which should gradually come down to 75 per cent and 60 per cent during the second year and third year, respectively. From the fourth year, this shall not be more than 50 per cent,” Irda said.