IRDA gives last chance to insurers to renew archived agency licenses up to 31-12-13

GUIDELINES PERTAINING TO ARCHIVED AGENCY LICENSES

CIRCULAR NO. IRDA/AGTS/CIR/GLD/066/04/2013, DATED 3-4-2013

The Authority has earlier archived huge number of individual agency licenses pertaining to the agents who had not submitted their Permanent Account Number and/or whose licenses were lapsed for more than 1 year, on account of which large number of licenses have become dormant thereby resulting in increase in number of orphan policies. Therefore, the policyholders insured through these agents are facing servicing problems with the insurers. The Authority is also receiving large number of requests from such agents to consider renewal of their licenses.

In view of the above, it has been decided to grant one time chance to all insurers to float campaigns to renew the archived agency licenses. These campaigns can be floated upto 31-12-2013. Beyond this date no request for renewal of archived license will be entertained. Further, it has also been decided to relax fresh examination and training criteria laid down vide circular Ref no. IRDA/CAGTS/CIR/LCE/082/05/2010. However, such agents seeking renewal of licenses shall undergo renewal training as mandated vide Regulation 5 of IRDA (Licensing of Insurance Agents) Regulations, 2000. All other Regulatory provisions applicable for renewal of agency licenses shall continue to be applied in respect of renewal of these licenses.

All the insurers are advised to publicize this among their agents so as to ensure that the maximum numbers of archived agency licenses are renewed. The insurers shall also furnish month wise data pertaining to these renewals to Joint Director, Agency Distribution Department, of the Authority. These instructions are issued under section 34 of Insurance Act, 1938 for compliance by insurance companies while renewing archived agency licenses of their respective agents.