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.