IRDA

Gives permission and rights to start an insurance company Giving permission to insurance companies to introduce new products Giving license to agents to sell insurance Decide how insurance companies can invest the funds Controls the expenses of the insurance companies In case of insolvency of the insurance company, IRDA plays a vital role

IRDA

Insurance Regulatory and Development Authority (Registration of Indian Insurance Companies) Regulations, 2000

Procedure for registration.---(1) An applicant desiring to carry on insurance business in India shall make a requisition for registration application in Form IRDA/R1. (2) An applicant, whose requisition for registration application has been accepted by the Authority, shall make an application in Form IRDA/R2 for grant of a certificate of registration. Class of business: life Or general Capital Requirement: 100 Crore for life or general , 200 crore for reinsurer business Joint venture: 26% foreign, 74% Indian Manner of payment of fee for registration.- The fee of rupees fifty thousand for each class of business for registration shall be remitted by a bank draft issued by any scheduled bank in favour of the Insurance Regulatory and Development Authority payable at New Delhi

How can an agent do business in an ethical manner?

An agent can do ethical business by:
Conducting his business according to legal requirements of various IRDA regulations and the Insurance Act, 1938

Conducting business in the manner described in the Tata AIG Lifes Code of Conduct
Conducting business keeping in mind moral principles Not making any false promises to the customer while selling the policy to him/ her. Keeping the information obtained from the customer confidential and not discussing the same with others.

Agents Code Of Conduct - IRDA Regulation 2000 : Dos & Don'ts

Identify himself and the Insurance Company he/she represents Provide full and correct information about the insurance product offered for sale Indicate the premium to be charged by the Insurer for the Insurance product offered for sale Explain the nature of information required in the proposal form Impress upon the prospect the need to disclose all material information Inform the insurer about any adverse habits and material facts of the person to be insured

Not induce prospects to submit wrong information Convey to the prospect about the acceptance or rejection of the proposal Advise every individual policyholder to effect nomination or assignment or change of address or exercise of options, as the case may be. Render necessary assistance to policyholders or claimant or beneficiaries in complying with requirements asked for by the insurer. Obtain the requisite documents at the time of filling the proposal form with the insurer; and other documents subsequently asked for by the insurer for completion of the proposal.

Do not's

Procure insurance business without valid license Behave in discourteous manner with the prospect Omit any material information in proposal form Offer different rates, advantages, terms and conditions other than those offered by his insurer Force a policyholder to terminate the existing policy Demand or receive a share of proceeds from the beneficiary under an insurance contract

Benefits of consistent Ethical Conduct

How will conducting your business in an ethical manner benefit you?
Builds good relationship Gets repeat business Gets referrals Good reputation Respect for self