How can agents deal with difficulty in switching insurance company?

One of our readers wrote to us with this query:

Dear Team Cafemutual,

I want to change my general insurance company but the branch manager of the insurance company is not issuing the NOC. I even approached the head office but to no avail.

Please help me how will I change my general insurance company and what’s the procedure to do this.

Subhash Garg

Dear Subhash,

Thanks for writing to us.

While IRDAI norms say it is mandatory to obtain no objection certificate (NOC) from the previous insurer to change the insurance company, practically, it is difficult to get one as many branch managers do not issue NOC fearing loss of new and existing business.

In your case, you should write to the CEO of the general insurance company through an email or send registered post along with your resignation letter, appointment letter and identity card. You can get email ID of your CEO on the website of General Insurance Council (GIC).

Further, if you still do not hear anything from the company till 90 days, it is considered that the company has issued NOC and you are free to do business with the new insurer.

Here are some steps that you need to follow:

·       You first need to surrender your agency license with the existing insurance company and return the appointment letter and identity card issued by the current insurer

·       After submitting these documents, you will receive a cessation certificate (a kind of relieving letter). IRDAI norms direct insurance companies to issue cessation certificates to agents within 15 days of the date of application

·       Once you get the cessation certificate, you can apply for fresh appointment with another insurer. You will have to furnish details of your previous agency and the cessation certificate

·       However, the new insurer will issue fresh appointment only after a cooling period i.e. 90 days from the date of issuance of cessation certificate by the previous insurer

·       Please note, you cannot sell policies during the cooling period

We hope we have addressed your query. You may write back to us at nishant@cafemutual.com if you need more clarity.

Regards,

Team Cafemutual