Circular No. IRDA/Life/Cir/Misc/126/08/2010, dated 9-8-2010
Insurers are aware that the Authority has issued IRDA (Sharing of Database for Distribution of Insurance Products) Regulations, 2010 under which “every insurer shall forthwith terminate all the referral arrangements entered into prior to the coming into effect of these regulations that are not in conformity with the provisions of these regulations”.
It was also stated that such arrangements shall be allowed to continue subject to them being suitably modified or amended in terms of these regulations within a period of six months from the date of notification of these regulations, and after obtaining the prior approval of the Authority. This effectively means that:
1. The existing referral entities that do not qualify for sharing data under the new regulations would have to be terminated right away, with effect from the date of notification of the regulations. No extension is allowable in case of agreements with such entities.
2. Some of the entities which have running referral agreements with insurers could be eligible for data sharing in the new regime also. Insurers may seek prior approval of Authority for modifying such agreements within a period of six months to comply with the above regulations. It is emphasized that the six-month time is allowed only in cases where the entities are eligible to share data under the new regulations.
Insurers are hereby advised to confirm compliance with the above regulations to the undersigned not later than 12th August 2010.
