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Insurance A step-by-step guide for agents to switch insurers

A step-by-step guide for agents to switch insurers

IRDAI has issued an FAQ for agents on how to switch their agency license.
Team Cafemutual Apr 14, 2019

In its latest frequently asked questions (FAQs) for insurance agents and intermediaries, IRDAI has addressed the process of switching ­insurance companies.

Currently, insurance agents are allowed to tie-up with one life insurer, one non-life insurance company and one standalone health insurer. Now agents can switch their insurance company by following these steps.

  • You first need to surrender your agency licence 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.

 

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1 Comment
Bajrangi Chaubey · 37 minutes ago
Istead of doing all these process an online process should be developed for the agents to change insurer because by going through physical process one faces a lots of difficulties.
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