An agent can be a part of board of insurance companies: IRDAI

IRDAI has allowed appointment of insurance agents and intermediaries on the board of an insurance company.

However, the regulator has put some conditions to protect the interest of policyholders and avoid conflict of interest. Let us look at them:

• Insurers will have to seek approval before appointing an agent or intermediary on board of insurance company
• A resolution has to be passed by the existing board before appointing an agent or intermediary
• Insurers cannot pay any remuneration to agent or intermediary in lieu of becoming a board member. However, they can pay sitting fees to appointed agent or intermediary
• The board will have to ensure that there is no conflict of interest in this appointment