Insurance policy holders will now have no difficulty if their agents suddenly switch from one insurer to another, which results in lack of service. The insurers will now have to enter into an agreement with their agents/corporate agents for continuing the relationship for a minimum period of three years, according to Mr J. Hari Narayan, Chairman, Insurance Regulatory and Development Authority.
Even in cases of sudden termination of an agreement with the agent (on the grounds of non-performance etc), the insurers would have to make adequate arrangements for servicing polices that were earlier serviced/being serviced by the agents, Mr Narayan said in a circular. “Mere provisions of call centre facilities will not be sufficient for fulfilling services at levels prescribed by IRDA,” he said.
The policy holders should also be informed of such arrangements made to service their policies, including contact details of officials concerned in the company. The insurers should not release renewal commission of agents who had left them before completing five years of service, he added.
