He will have to promptly inform the prospect about acceptance or rejection of the proposal by the insurer. He will have to forward to the insurer information received from the client regarding any claim. The insurance marketing firm will have to keep a copy of the proposal form signed by the client as well as maintain records of know-your-client details, a premier register, copy of the policy document issued to the policyholder and also charges or commission received from him/her. The firm will have to submit quarterly new business reports, insurance sales persons deployed by the firm and any other return that may be required by the regulator.
Irda may inspect records of the insurance marketing firms and, if it finds any deficiency, it may suspend or cancel the licence of a company.
The insurance marketing firms will have to put in place adequate steps for redressal of grievances and address them within two weeks of their receipt. The firm will also have to inform Irda about the number, nature and particulars of the complaints received.
The applicant will need to have a net worth of R10 lakh and ensure that it is maintained at all times and is certified by a chartered accountant. Every insurance marketing firm will have to take a professional indemnity cover throughout the validity of its licence. The limit of indemnity will be four times the business turnover of the firm.
The Irda has mandated that the principal officer of an insurance marketing firm must have 10 years’ experience and should either be a fellow/associate of the Insurance Institute of India, Mumbai, or associate/fellow of Institute of Risk Management, Mumbai, or associate/fellow of the Institute of Actuaries of India ,or hold a post-graduate degree of the Institute of Insurance and Risk Management, Hyderabad. The principal officer will have to undergo 50 hours of brokers' training from an institution recognised by Irda.
Insurance salespersons associated with a firm will need to have at least a matriculate certificate and must have undergone the brokers' training prescribed by the regulator.
All salespersons engaged by the firm will be paid a monthly salary that cannot be lower than the minimum wages. In addition, the firm, depending on his performance, can pay him additional incentives, which will have to be declared up front and will be part of the employment contract between him and the insurance marketing firm.