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IRDAI has asked insurance companies to facilitate an online or digital system through which policyholders can change agents or get support from direct sales staff wherever their existing intermediary is no longer associated with the insurer.
IRDAI said, “Policyholders should get an option to avail online services or allotment of another insurance agents/sales staff for uninterrupted policy servicing even if and when an insurance intermediary is no longer associated with the insurer.”
Unserved policies or orphan policies are those insurance policies which are abandoned by the insurance agents who have quit their profession. Also, policies which have a longer tenure and require regular premium payouts can be termed as ‘Orphan’. However, single premium life insurance policies or life insurance policies on which no further premiums are due for payment are not termed as orphan policies.
Agents quit insurers for three reasons – termination of tie up, voluntary cessation of agency license or opting to work with a new insurer.
IRDAI clarified that these allottee agents will be entitled to get renewal commission as long as the policy is in force.
However, IRDAI said that insurers cannot accept any new business from allottee insurance agent or direct sales team with respect to the same policyholder if he/she does not renew transferred policy or surrender it within 6 months.
Nitin Deo, CTO Strategy, Zuno General Insurance feels that these provisions for uninterrupted policy servicing and streamlined group insurance further enhance policyholder’s confidence and satisfaction. “These measures are designed to provide efficient, economical and high-value services, reinforcing the commitment to policyholder empowerment."
