IRDAI has asked insurance companies and insurance intermediaries like agents and brokers to keep their business records like payments, policies sold, employee details in electronic form as well.
In fact, the market regulator has asked insurance agents, intermediaries and companies to submit timeline to comply with the norms within 15 days.
Earlier this month, IRDAI asked insurance companies and insurance intermediaries like agents and brokers to keep their business records like payments, policies sold, employee details handy. IRDAI said that these details will help them carry out investigation and inspection of business activities of insurance companies and agents.
Now, the insurance regulator has given six month time to agents and insurers to maintain all business records handy either physically or electronically i.e. by May 23 2021.
While it is not mandatory to keep these business records digitally, IRDAI wants intermediates and insurers to keep all their records in electronic form to save cost and easy accessibility. IRDAI said, “Though regulations allow maintenance of records either in physical form or electronic form, the insurers and intermediaries are encouraged to maintain the records in electronic format so as to ensure cost effectiveness; and accessibility of these records for investigation and inspection by the regulator. Therefore, it is advised that necessary steps may be taken by the insurance companies and insurance intermediaries to ensure digitalisation of physical records in a phased manner so as to convert them into it electronic format within prefixed timelines you are requested to indicate, within the next 15 days, the timeline needed for your company.”
IRDAI clarified that agents are required to maintain business records like list of new policies sold, policies renewed, claim settlement, grievances and complaints received and details of employees if any. In addition, agents will have to disclose if they have entered into an agreement with third parties to generate leads or solicit policies. Also, agents will have to maintain receipt of all payment received and made.
Similarly, insurance companies need to maintain list of all the proposals received, policies sold and renewed, claim request, grievances and complaints and appointment letters issued to all agents, consultants, members of the staff along with changes.
Further, the insurance regulator has asked agents and other intermediaries to keep invoices and vouchers of all kind of payment received separately - commission, rewards, bonus and any other remuneration.